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
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
