When energy shocks bite harder: Non-linear inflation dynamics
The conflict in the Middle East has exposed the euro area to higher energy prices. Using a flexible empirical framework, this column shows that inflation
A smarter approach to electricity rationing
Ukraine’s grid operators have primarily relied on rotational outages to manage power scarcity, but this effectively functions as regressive tax on those least equipped to
A new strategy to contain stablecoin risks in the European Union
EU reluctance on stablecoins may backfire as US-backed dollar tokens spread, pushing demand offshore and importing dollar risks into Europe. Stablecoins – a form of
The flaws in the European Union’s proposed Industrial Accelerator Act and how to fix them
IAA provisions should rest on clear sector choices, WTO-safe criteria and FDI screening that welcomes value-adding investment. The Industrial Accelerator Act (IAA), proposed by the
Europe needs a strategy to close the artificial intelligence compute gap
In its bid to compete with the US on AI, Europe could learn from both China and from the classic Airbus industrial policy case. The
Unlocking the benefits of green water flows for growth and development
At the Global Facility for Transboundary Waters, when we speak with stakeholders about transboundary water management, the conversation almost always centers on the stewardship of what
Understanding spatial barriers to jobs and much more with GeoE3
Access to jobs is influenced by where people live and the conditions that surround them. Spatial factors such as infrastructure, safety, and exposure to natural
Faced with global shocks, protect investments that drive growth and jobs
The global economy is entering another period of heightened stress. Geopolitical tensions, policy uncertainty, climate risks, and rapid technological change are making policy decisions more
The devil is in the tail: How firms’ beliefs about rare macroeconomic disasters shape investment
Little is known about how firms think about rare macroeconomic disasters and how these beliefs shape their decisions. This column uses survey evidence from a
Macroeconomics of tariffs with global production and finance networks
Tariffs have returned as instruments of economic and geopolitical policy, but their short- and medium-run macroeconomic effects are still not fully understood. This column introduces
