Inventories in the crisis.

Abstract

At the end of 2008, a massive and worldwide drawdown of inventories contributed to the strong contraction in international trade and activity. This movement was no doubt exacerbated by the financial constraints on companies and the transmission of the shock along globalised production chains. Conversely, from mid-2009 onwards, destocking slowed, contributing to a V-shaped recovery.inventory cycle, just-in-time, great recession, bullwhip effect, financial constraints.