The green transition faces significant challenges due to economic and policy uncertainty. Unpredictable returns on investments, especially in renewable energy, hinder innovation in this crucial sector. This column examines the impact of uncertainty on renewable energy patents. The findings show that a rise in uncertainty reduces green innovation by up to 1.5%, with stronger effects […]
As the world meets at the UN Climate Change Conference in Baku, stories about the unsustainability of the data centres that power artificial intelligence are making headlines every day. This column introduces the concept of an ‘eco-political economy of AI’, covering each step from mining materials to processing data to digital waste. Only by examining […]
Stablecoin balance sheet structures closely resemble those of money market funds. This column finds that despite these similarities, their reactions to crypto and US monetary policy shocks are different. Following a crypto shock, the assets under management of money market funds barely bulge whereas the capitalisation of stablecoins drops significantly. After a monetary policy tightening, […]
Bitcoin’s march toward $100,000 made further ground on Thursday as investors bet a friendlier U.S. regulatory approach to cryptocurrencies under President-elect Donald Trump will unleash a boom era for the asset class. Bitcoin prices topped $96,000 for the first time in Asia trade, touching a high just above $96,898. The cryptocurrency’s price has more than […]
Nvidia forecast its slowest revenue growth in seven quarters on Wednesday, with the artificial intelligence chipmaker failing to meet lofty expectations of some investors who have made it the world’s most valuable firm. Shares of the Santa Clara, California-based company fell 5% after it posted results but quickly pared losses to trade down 2.5% after hours. During […]
The gender pay gap remains stubbornly large. At the same time, city workers earn more than rural workers, a phenomenon known as the urban wage premium. This column shows that up to 2008, the urban wage premium for women in the UK was more than twice that for men, but it fell drastically during the […]
After five quarters of stagnation, the EU economy returned to modest growth in the first three quarters of the year, while the disinflation process continued. According to the European Commission Autumn Forecast, the conditions for a continued gradual pick-up in growth in 2025 and 2026 are in place. Financial conditions are easing; the labour market […]
Forecasting, especially in central banks, is evolving to incorporate a variety of models, following two main approaches: structural and reduced form. The challenge remains to identify which model – or combination of models – is likely to produce more accurate macroeconomic forecasts, especially in an environment that encompasses crisis events. This column argues that merging […]
As the COVID-19 pandemic demonstrated, the global health system is only as strong as its weakest link. This column proposes a Global Health Impact metric to measure the effectiveness of health interventions by evaluating lives saved and disabilities prevented. The authors suggest that by considering the dynamic nature of health interventions and their effectiveness in […]
The transition to a green economy will require large investments by firms. This column uses new survey data to study the importance of climate-related investment for UK firms. Over half of firms expect climate change to have a positive impact on their investment in the medium term, and around two-thirds of these investments are expected […]
