The Macroeconomic Fragility of Critical Mineral Markets

Wilson Kang, Russell Smyth and Joaquin Vespignani

No 2025-09, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: This paper applies and extends the macroeconomic fragility framework for studying the effects of supply chain disruptions, proposed by Acemoglu and Tahbaz-Salehi (2024), to incorporate the role of stockpiling, which stabilizes critical mineral markets and reduce macroeconomic fragility. A key prediction of the macroeconomic fragility framework is that equilibrium supply chains are inherently fragile, meaning that even small shocks can trigger cascading supply chain breakdowns that can significantly magnify the discontinuous response

Keywords: Global Supply Chain Disruption; Critical Minerals; Non-technical Risk Premiums Macroeconomic Fragility (search for similar items in EconPapers)
JEL-codes: F62 Q30 Q43 (search for similar items in EconPapers)
Date: 2025-05-01
New Economics Papers: this item is included in nep-ene and nep-rmg
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: The Macroeconomic Fragility of Critical Mineral Markets (2025)
Working Paper: The Macroeconomic Fragility of Critical Mineral Markets (2025)
Working Paper: The Macroeconomic Fragility of Critical Mineral Markets (2025)
Working Paper: The Macroeconomic Fragility of Critical Mineral Markets (2025)
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