Climate stress test of the global supply chain network: the case of river floods Staff working paper 2026-30 Georgios Papadopoulos, Javier Ojea Ferreiro, Roberto Panzica This study investigates how extreme flood events can indirectly impact the global supply chain through production disruptions. The findings emphasize that the size of inventories is crucial; a lean-inventory system leads to faster shock propagation, higher losses, and fewer recoveries compared to an abundant-inventory system. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C60, C63, D, D8, D85, Q, Q5, Q54 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Structural challenges, Climate change, International trade, finance and competitiveness