Capital controls re-emerged as a tool for policymakers grappling with volatile capital flows after the 2008 financial crisis. This column explores the heterogeneous effects that capital controls have on firms, focusing particularly on capital intensity and export status during the Chilean ‘encaje’, which was implemented between 1991 and 1998 to restrict capital outflows from the […]
The 2023 banking turmoil was the first major challenge faced by the Basel III framework. This column introduces the sixth report in The Future of Banking series, which examines the causes of the turmoil as well as its implications for financial regulation. The report centres around three major themes: the causes of boom and bust […]
In May 2004, 75 million people across ten accession countries became citizens of the EU. Between 2004 and 2019, the GDP per capita of these countries almost doubled. This column examines the contribution of accession to the EU to this economic ‘miracle’ and finds that it accounts for almost a third of the current level […]
ExtendMax, the leading compliance consulting service provider in Vietnam, has been honored with the title “Best Regulatory Compliance Agency” at the Global Business and Finance Magazine Awards 2024. This is another international recognition of ExtendMax’s continuous efforts to enhance service quality and customer experience on a global scale. The Global Business and Finance Magazine Awards […]
Most less-developed regions remain at or below the technological frontier, and investments in science and technology do not always effectively drive innovation in these areas. This column shows how artificial intelligence and robotics present a potential solution to the innovation gap problem for cities in China. Investment in AI and the density of industrial robots […]
The workforces of most high-income countries have been ageing at a rapid pace. The standard response to this has been to extend the careers of older workers. This column uses data from Italy to show how this may come at a cost to the careers of younger workers. Younger workers have faced increasing struggles to […]
A major concern in the policy debate during the COVID-19 pandemic was that smaller or younger firms could bear the brunt of the decline in economic activity. Using a large cross-country firm-level database, this column finds no evidence of a size premium in firm revenues or investment, either in 2020 or in the subsequent recovery […]
Firms’ power in the product and labour markets are closely linked. Examining firm-level data from Lithuania between 2004 and 2018, this column finds that firms are gaining power in the product market but losing it in the labour market. The micro-level analysis suggests rent-sharing between firms and workers, while the macro-level analysis highlights the reallocation […]
Investing in the stock market can be very beneficial for households’ long-term financial wellbeing and retirement planning. This column uses ECB survey data to show, however, that households are generally reluctant to invest in stocks, even when they experience a sudden in wealth. The findings demonstrate the effect of barriers to stock market participation, such […]
Family planning policies are widely used to control population growth and promote human capital development. Exploiting the implementation of the one-child policy in rural China, this column shows that such policies also influence intergenerational mobility. While the one-child policy reduces family size and allows parents to devote more resources to each child, only parents in […]
