OECD countries have just suffered a negative supply shock: It will have to be corrected by supply-side policies

The across-the-board rise in commodity prices and in companies' intermediate consumption (semiconductors, transport, etc.) is a negative supply shock. We remember the mistake made in the late 1970s and early 1980s: reacting to a negative supply shock by a policy of stimulating demand (public spending), with the only result being inflation. If economic policy wants to respond to a negative supply shock, if this shock persists, it must do so through supply-side policies, for example by reducing taxes that affect investment and employment, by providing aid for hiring and investment, etc.