• Loading stock data...
World Featured trade

Price and output responses to supply disruptions in times of high uncertainty

Price setting has become more flexible following a string of large adverse shocks. This column argues that a shift to a high-uncertainty regime incentivises firms to invest in their ability to adjust prices. Faced with higher productivity uncertainty, firms set prices more flexibly, and this gives rise to comparatively large price hikes when adverse supply […]

World Business Economy Featured

International trade in brown shares and economic development

Divestment of polluting companies has gained traction as way for investors to incentivise the transition to a low-carbon economy. This column examines the tilting of equity portfolios to green versus brown firms internationally, and finds that investors in richer countries tend to hold relatively greener portfolios compared to investors in poorer countries. By acting as […]

Development Featured Technology

Reforming innovation policy to help the EU escape the middle-technology trap

Europe lags behind in innovation. This column describes how its industry seems stuck in a middle-technology trap in which it does not pay to leave the beaten path. The authors argue that EU innovation policy should support disruptive innovation to break this path dependency, but this needs profound reforms, both in terms of its structure […]

Economy Featured Lifestyle World

Silence is golden: How public criticism of central banks can backfire for leaders

Amid a global surge in populism, political pressures on central banks to lower interest rates have escalated, driven by populist politicians’ preferences for low rates to fuel short-term, growth-oriented policies. This column explores the impact of this heightened political pressure on financial market and central bank behaviour. It finds that political pressure for low interest […]

World Featured trade

Positioning in global value chains: A new dataset available for global value chain analyses

Amid recent global shocks and increasing geopolitical tensions, the debate surrounding the future of global value chains and economic integration has intensified. This column introduces a new open-access dataset of ready-to-use positioning indicators, calculated for a wide array of countries, including most developing nations, and sectors, covering an extensive period. These indicators are derived from […]

tax Banking Business Featured

Cascades of tax policy through production networks: Evidence from Japan

Public policies can have direct effects on firms, but also propagate through production networks. This column studies the spillover effects through supply chains of a bonus depreciation tax policy in Japan. Beyond the direct effects, it finds strong positive effects on upstream firms, but not on downstream firms. Furthermore, it shows that large suppliers are […]

Economy Featured World

The populist dynamic: Experimental evidence on the effects of countering populism

The past few decades have seen a remarkable surge in populism across Western democracies. This column evaluates how mainstream parties might counter populism by estimating the short- and long-term effects of an anti-populist campaign in Italy. The findings suggest that while countering populism using its own tactics can yield immediate benefits to mainstream politicians, such […]

tax Banking Featured

Behavioural responses to wealth taxation: Evidence from Colombia

Interest in wealth taxation has grown in recent years as a way to combat inequality and raise revenue, but evidence on the responses to wealth taxes has so far been sparse. This column exploits changes in Colombia’s wealth taxation regime to examine behavioural responses. Taxpayers promptly reduced their reported wealth to fall below higher tax […]

Finance Banking Featured

Corporate debt and financial crises

Household debt dynamics are widely recognised as an important driver of boom-bust cycles, but corporate debt has received less attention. This column studies the role of firm debt in macroeconomic fluctuations using a large historical cross-country dataset. The authors show that corporate debt plays a crucial role in boom-bust cycles, financial crises, and sluggish macroeconomic […]