The effect of energy prices on core inflation was negligible in the US but large and persistent in the euro area, where energy price shocks account for around one-third of current core inflation. This column examines and compares the consequence for these economies. It shows that core inflation in the US is unlikely to benefit […]
In 1990, about half of the population in Sub-Saharan Africa and South Asia and two-thirds in East Asia and the Pacific were living in extreme poverty (defined as living on less than what today amounts to around $2.15 per person per day). In the three decades that followed, these three regions have followed quite different […]
The European Commission will analyse the U.S. ban on new U.S. investment in China in sensitive technologies as the issue is also important to the European Union’s economic security, the EU executive said on Thursday. U.S. President Joe Biden on Wednesday signed an executive order to prohibit or restrict U.S. investments in Chinese entities in […]
Half of the global population today is below 30 years old, and this share will reach almost 60 percent 10 years from now. Given these demographic trends, youth have the potential to become a critical engine for global development if provided with the knowledge and job opportunities they need to thrive. In December 2009, the United Nations […]
Research on gender differences in attitudes towards risk and behaviors in competitive environment suggests that women may be more “risk-aware” and “risk-averse” than men. This may lead to women being more thorough and pragmatic in the management of risk, and more likely to be involved in monitoring-related committees and are more likely to attend meetings. Studies […]
Despite falling interest rates over the past decades, investment rates have not increased as standard economic theory would suggest. This column constructs a global database of firm discount rates and cost of capital using corporate conference calls, and matches this to investment rates. It finds that changes in the cost of capital only modestly affect […]
The ECB has highlighted its commitment to developing a digital euro and has explicitly stated that the digital currency will adhere to three principles: preserve European strategic autonomy, reduce rent extraction by payment service providers, and serve as a robust monetary anchor when cash transactions decline. This column argues that a fourth, implicit objective – […]
Financial firms that enforce strict return-to-office mandates could drive employees to leave, according to a study published Tuesday by accounting firm Deloitte. Of 700 financial executives surveyed by Deloitte, 66% who worked remotely part time said they would likely quit if they were ordered to return to the office five days a week. “Professionals – […]
The U.S. Commerce Department said on Wednesday that more than 460 companies have expressed interested in winning government semiconductor subsidy funding in a bid to boost the country’s competitiveness with China’s science and technology efforts. The White House is marking the one-year anniversary on Wednesday of President Joe Biden’s signing of the landmark “Chips for America” legislation […]
Spain’s third heatwave of the summer was set to reach its peak on Wednesday, with temperatures hitting up to 44 degrees Celsius (111 degrees Fahrenheit) in central and southern areas as authorities warned of the risk of wildfires. The mercury could also rise to 40 C in the Basque Country in northeastern Spain, which is […]
