capacity utilization, a widely accepted measure of bottlenecks and slack, is only an imperfect measure for supply constraints … level of capacity utilization. This result challenges a recent literature that argues that capacity utilization is a …

direct measure that indicates material shortages and capacity utilization, a widely accepted measure of bottlenecks and slack … material constraints are not very persistent at the firm-level. We also show that high capacity utilization is not indicative … to expansionary monetary policy shocks, even when capacity utilization is low. Our results therefore suggest that …