Pricing cascades: Inflation in a networked economy
The post‑pandemic inflation surge is often attributed to pent-up demand and opportunistic price hikes by firms. This column argues that the surge was not driven
European and Chinese exports kept growing despite the 2025 Trump trade shock
Diversification has kept global trade strong, despite Trump’s tariffs and accelerated US-China decoupling. One of the main ways in which the economic policies of the
Europe’s US holdings: Leverage lies in marginal demand
The question of whether Europe’s $12.6 trillion holdings of US assets be used as leverage if relations with Washington sour has become increasingly salient in
EU barriers to scaling up: The case of fragmented product markets
European firms tend to be smaller and less productive than US firms. Qualitative and survey-based evidence suggests that one key reason is the remaining barriers
Peering beyond the veil of aggregate bank lending rate dynamics: Insights into credit-level pricing and composition effects
During the recent tightening and easing cycle, the aggregate bank lending rate to firms in the euro area increased by less than the rise in
Beyond carbon pricing: How different climate policies affect carbon leakage through trade
A central concern in the climate policy debate is whether ambitious mitigation efforts simply shift emissions abroad. This column addresses estimates carbon leakage rates and
Stablecoins and the exorbitant privilege of money creation
Payment stablecoins are set to become an important financial instrument. Their impact on the financial system will depend on whether the issuers can purchase assets
The market value of non-degree credentials: New evidence from 37 million US workers
Non-degree credentials are rapidly multiplying as alternatives to traditional higher education, but in a largely unregulated market. This column draws on nearly 40 million US
US tariffs may deepen integration, elsewhere
While recent analysis has focused on direct impacts of US tariffs and potential retaliation, major US trading partners have intensified trade negotiations with each other,
FDI and growth in the age of global value chains
Existing evidence indicates that foreign direct investment promotes growth only when host economies have the human capital and deep financial markets to absorb spillovers. This
