Floods are becoming more common and costly as a result of climate change. This column uses localised data from three European countries to identify the financial impact of flooding on small and medium-sized enterprises, an important channel beyond the immediate impact on physical capital. The authors find that flood risk increases lending costs for such […]
To combat the Great Recession following the 2008 financial crisis and the more recent pandemic recession, central banks around the world purchased unprecedented quantities of securities. This column shows that central bank asset purchases by the ECB have a smaller effect on securities held by price-elastic investors (e.g. mutual funds, banks) and securities the ECB […]
Faculty mobility has been a hallmark of universities since their inception. The connections forged between distant campuses has facilitated the exchange of manuscripts and students, nurturing academic productivity and the spread of ideas. This column surveys the academic landscape in Europe from 1000 to 1793, focusing in particular on how the Protestant Reformation affected the […]
The US aims to revitalise its domestic semiconductor manufacturing industry, but will there be enough skilled workers to meet the ambitious goals? This column presents evidence, based on a global dataset of 1.6 million employees with chip manufacturing skills, that US protectionist policies – increased tariffs and visa restrictions – implemented since 2018 may have […]
US inflation surged in the early post-COVID period, driven by various economic shocks including supply chain disruptions and labour supply constraints. Following its peak at 6.6% in September 2022, US core consumer price index inflation has come down rapidly over the last two years, falling to 3.6% recently. This column shows that the interaction between […]
UK bond yields are currently higher than the G7 average, leading to historically high debt interest payments. Importantly, the level of breakeven inflation embedded in UK gilt yields is high compared to international peers, and well above the 2% inflation target. This column argues that the UK government can reduce its debt interest bill by […]
Climate change is frequently described as an existential threat, posing significant risks to our lives, livelihoods and the global economy. This view, however, stands in stark contrast to empirical estimates of the impact of climate change on economic activity, which imply only modest economic effects. Do existing estimates not account for the full impact of […]
Japan identifies ‘top-level sales’ through overseas visits by political leaders as an important policy tool to help Japanese firms win more infrastructure contracts. However, overseas visits can be controversial, not least because of their cost. This column examines the net benefit of overseas visits by Japanese political leaders. The probability of contracts being awarded to […]
Fuel excise duties are a substantial source of tax revenue for many countries as well as a tool for pricing the climate and non-climate externalities of road transport. This column examines how the decarbonisation of the French economy will affect both tax receipts and the pricing of road externalities. The authors calculate that road transport […]
The narrowing of the gender pay gap slowed around the turn of the 21st century. Meanwhile, younger workers have fared progressively worse than older workers. This column uses data for the US, Italy, Canada, and the UK to show that while pay convergence was initially driven by a narrowing of the gender gap at labour […]
