Investor memory and biased beliefs: Evidence from the field
Financial markets are volatile, and research attributes this to highly variable and often irrational investor beliefs. This column uses a large-scale survey of Chinese retail
Interest rate and deposit run risk: New evidence from euro area banks in the 2022-2023 tightening cycle
Rising interest rates expose the interaction between hidden losses on long-duration assets and flighty uninsured deposits. This column uses confidential data for 139 euro area
Industrial policy and retaliatory protection under the WTO: Lessons from China
Industrial policy is increasingly implemented worldwide, with many policymakers and researchers highlighting its benefits. However, the cost of industrial policy remains less understood. Using Chinese
Crypto, tokenisation, and the future of payments
The introduction of crypto technology and tokenisation is spurring changes in the financial system. Meanwhile, the Trump administration is taking steps to integrate crypto into
Chat Bankman-Fried: An experiment on LLM ethics in finance
As large language models gain traction, it is important to ensure that decisions delegated to them comply with ethical and legal principles. This column reports
From battlefield to market: How disruptions in Ukraine affected grain price trends
Commodity price spikes at the outset of Russia’s full-scale invasion of Ukraine contributed significantly to global inflation in 2022-23, which caught many policymakers off guard
The Federal Reserve, the new administration, and the outlook for the economy and monetary policy
The new US administration has made the Federal Reserve’s monetary policymaking more complicated both because of the elevated uncertainty regarding administration policies and because of
Dangling fiscal surveillance: EU fiscal policies in 2024
Effectively suspended since the onset of the Covid pandemic, the EU fiscal rules were set to make a comeback in 2024. At the same time,
From words to deeds: Incorporating climate risks into sovereign credit ratings
Climate-related risks are increasingly recognised as an important threat to long-term fiscal sustainability. This column studies the extent to which credit rating agencies integrate these
Strong Japan GDP lifts yen, dollar steady as rate cut fervour cools slightly
Dollar on course to end week flat against EUR; lower against JPY, GBP. The dollar was largely steady against the euro and British pound on
