Financial asset price movement impacts product demand and thus influences operational decisions of a firm. We develop and solve a general model that integrates financial risk hedging into a price-setting newsvendor. The optimal hedging strategy is found analytically, which leads to an explicit...

This paper examines the impact of global supply chain disruptions and the associated uncertainty on economic activity and inflation. We employ a Bayesian VAR model with the Global Supply Chain Pressure Index (GSCPI) and estimated uncertainty to analyze their effects during the pandemic. Our...