Issue Watch point: reconfiguration slides into protectionism that buys resilience with inflation

Summary

This issue is the first watch point in the report's story about supply chains being reforged around reliability and security. It warns that the reconfiguration of supply chains could slide into protectionism. Such protectionism might increase resilience while at the same time making inflation worse. Governments could then face a trade-off between security of supply and price stability. The report elsewhere suggests that widespread protectionist policies could produce a less open and cooperative global trade environment. The watch point highlights the economic cost that may accompany the pursuit of resilience.