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
The role of imported R&D services and immigrant researchers in firm growth: Evidence from Denmark
Firms increasingly rely on immigrant researchers or imported R&D services for innovation. This column argues that these sources of foreign ideas play a pivotal role
Firms’ debt structure matters for monetary policy transmission
Since the 2008 global financial crisis, firms’ funding patterns have changed, with a shift towards more market-based finance with active issuances of debt securities by
Commodity prices and the global financial cycle
The US and China’s economic rebound has fueled global growth and put upward pressure on commodity prices, while geopolitical risks are increasing the volatility of
The strength of monetary policy in emerging markets
Monetary policy is often feared to have limited traction in emerging markets. Yet, empirical evidence supporting or disproving these concerns is scarce. This column constructs
Non-bank financial intermediation: Research, policy, and data challenges
Non-bank financial intermediation has grown rapidly since the global financial crisis, and its size now equals that of banks in many countries. This column reviews
Consumers regard the cost of money as part of the cost of living
Economists typically rely on unemployment and inflation rates to gauge how consumers feel about the economy. This column examines why consumer sentiment in the US
Savings responses to increasing retirement ages
Facing pressures from population ageing, many countries are reforming their social security systems, including by increasing retirement ages. This column provides new evidence on the
Austerity and climate (in)action
In the wake of the 2008 global financial crisis, many governments implemented austerity policies aimed at reducing budget deficits through public spending cuts. This column
