Interest rates and exchange rates when the money supply goes up
The power of monetary policy to affect interest rates and exchange rates depends on the downward slope of the demand function. This column uses the
Global economic fracturing and shifting investment patterns: A diagnostic of ten FDI trends and their development implications
The effects of economic fracturing are intertwined with broader, longer-term shifts in trade, investment and global value chains. In many respects, the impact of these
European firms facing geopolitical risk: Evidence from recent Eurosystem surveys
Recent geopolitical tensions have been putting pressure on international supply chains. This column presents the findings from recent surveys conducted by central banks of the
Electrifying equality: How electricity adoption boosted inclusive growth in early 20th century Sweden
When new general-purpose technologies like AI emerge, both techno-optimists and techno-pessimists predict that inequality will increase among the labour force. This column studies the rapid
Why oil import restrictions hurt Russia more than the price cap
Sanctions in response to the invasion of Ukraine led to a substantial decline in Russia’s crude oil revenues in 2022 and 2023. This column argues
Influence of nature-related risks on loan pricing and the financial sector
Biodiversity losses pose risks not only to environmental health but also to global financial stability. This column examines the propagation of nature-related transition risks from
Dominant currency pricing in international trade of services
The US dollar is the dominant vehicle currency for global goods trade, but there is less evidence for trade in services. This column uses a
How geopolitics is changing trade
There has been a rise in trade restrictions since the US-China tariff war and Russia’s invasion of Ukraine. This column explores the impact of geopolitical
How zero-risk weights on sovereign debt can lead to capital misallocation
Financial institutions, especially in Europe, hold a disproportionate amount of domestic sovereign bonds on their balance sheets. This home bias is facilitated by regulation that
COVID-19 policy support and firm productivity in retrospect
The strict measures to contain the spread of COVID-19 called for a quick governmental response. This column highlights how the allocation of support across firms
