Financial engineering is no substitute for interest rates: Lessons from Türkiye
The Turkish central bank cut interest rates over 2021-2023, on the politically driven view that higher rates cause inflation. This column analyses the policies used
Closing the gap in borrowing costs for emerging market firms
Firms in low- and middle-income countries persistently pay more to borrow than firms in high-income economies. Drawing on a new World Bank Group study of
The inflation rate fell but many workers’ pay cheques did not keep up
Inflation in the US has receded from its 2022 peak. This column uses payroll records from 2016 to 2025 to show that many workers have
The Inflation Reduction Act’s regional incentives promoted green investment, but did not create jobs
The US Inflation Reduction Act’s Energy Communities provisions aimed to increase clean-energy investment in areas vulnerable to the energy transition, create jobs, and build political
Anatomy of a supervisory failure
For its entire 15-year life as a regional bank until its collapse in 2023, Silicon Valley Bank held the same risky bet. This column argues
When trade sanctions increase the target’s trade
Data show that trade sanctions reduce commerce between the countries imposing them and their targets. But this bilateral success can conceal a wider failure if
Competition or collusion: Entry decisions in the Swedish pharmaceutical market
Many countries have adopted different price regulations to contain pharmaceutical prices, even in markets exposed to generic competition. This column documents subtle pricing patterns in
Digitalisation and credit markets: Evidence from eInvoicing
Governments around the world are increasingly mandating the digitalisation of business records, yet little is known about the effects of these policies beyond tax compliance.
Why Europe needs Eurobonds
The 2024 reform of the EU fiscal framework makes fiscal adjustment more country-specific and less procyclical. However, it does not eliminate two fundamental tail risks:
Why more information can make macroeconomic expectations less accurate: Global evidence from 47 countries
Households do not simply choose how much macroeconomic information to acquire; they choose among sources that differ in representativeness and credibility. Using a survey of
