Showing up in the Alps: The economic value of Davos
Attending the World Economic Forum in Davos is costly, with estimates ranging between $20,000 and $70,000 per delegate. This column uses data on attendees from
Productivity, firm size, and why distortions hurt developing economies
In many developing countries, productive firms remain too small, while less productive firms are too large. Such misallocation contributes to losses in aggregate productivity. This
Europe’s public finances in a warming world
Climate change is increasingly shaping macro-fiscal outlooks. Extreme weather events, chronic damages from global warming, and decarbonisation efforts all have growing implications for public finances
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
