Cheaper machines, costlier buildings: The drag on long-run growth
The steady decline in the relative price of equipment has long been seen as a primary engine of long-run growth. This column documents a quieter,
Europe suffers not so much from a ‘flight’ of savings as from insufficient allocation to equities
Europe exports a large surplus of savings outside the continent each year. This column argues that this should not be interpreted as a capital ‘flight’:
From European public goods to a European safe asset: A pragmatic roadmap
The search for a European safe asset has generated no shortage of proposals, but these proposals require, from the outset, a degree of mutual trust
The global minimum tax: More winners than losers – even without the US
A landmark shift in the international corporate tax system is taking shape. The introduction of a 15% global minimum tax aims to reduce profit shifting
The transatlantic divide in labour’s share of income
Across advanced economies, workers have been receiving a smaller share of national incomes. This column compares the evolution of labour’s share of income in Europe
The impact of geopolitical risk on the euro area economy: Past experience and future prospects
Geopolitical risk has become a key driver of macroeconomic fluctuations. This column analyses the macroeconomic costs of the Russo-Ukrainian war for the euro area, and
Literature support and the capabilities of autonomous research agents
A central weakness of modern machine-learning systems is that performance tends to deteriorate outside the support of the training distribution. This column uses a tournament-style
Global trade linkages and the cross-country distribution of the gains from AI
Productivity gains from AI are expected to be significant, but how international trade shapes the cross-country distribution of these gains remains an open question. This
The word is not enough: Testing the effects of information treatments on perceived corruption in Ukraine
Despite significant progress in fighting corruption since 2014, corruption perceptions in Ukraine are extremely high, while the government’s willingness to fight it is seen as
The inefficient pricing of news
The main obstacle to market efficiency is whether investors can read, process, and quickly extract genuinely new information from articles. This column uses large language
