What could developing countries do with an extra $500 million per year for infrastructure? That kind of money could finance around 83 kilometers of bus rapid transit service, easing congestion and improving public transport. It could add 570 megawatts of installed solar power, doubling some of Africa’s largest solar plants. Or it could fund 500 additional kilometers of four-lane […]
Prior to the 2020 US presidential election, Twitter modified its user interface for sharing social media posts, hoping to slow the spread of misinformation. Using extensive data on tweets by US media outlets, this column explores how the change to its platform affected the diffusion of news on Twitter. Though the policy significantly reduced news […]
Economic sanctions on trade and financial activities are increasingly being used around the world. This column develops a model of international trade and macroeconomic dynamics to study the effects of sanctions that prohibit trade in certain goods and/or with certain agents. Trade and financial sanctions both lead to lower welfare for the targeted economy, regardless […]
Significant post-pandemic fluctuations in exchange rates and an unusual degree of economic uncertainty have raised the question of how exchange rate movements affect domestic prices in such an environment. Drawing on the experience of a large sample of advanced and emerging market economies over the past 30 years, this column documents that exchange rate pass-through […]
Extreme weather events are bringing devastating consequences for an increasing number of people and countries, so quantifying their economic impact is highly relevant. The effect of changes in climate-related variables on economic output is typically estimated using a ‘damage function’. The methodologies and damage estimates relating to these functions vary a great deal, with each […]
In the next economic downturn, central banks will have to decide whether to restart quantitative easing policies. This column assesses whether central banks may resort to asset purchases in the future and focuses on the signalling channel of transmission. It discusses the underlying mechanisms which support this channel, including showing that monetary policy is not […]
Victor D. Norman, who passed away in September 2024, was a leading figure in international economics. This column outlines the contributions he made to the field through his own research, his leadership in several research projects in Norway and Europe, and the organisation of the most pleasurable conferences and workshops in the profession. Victor Danielsen […]
Many financial institutions have pledged to minimise their exposure to climate transition risks. But moving assets away from sectors with high emissions is sometimes at odds with supporting climate transition investments, as sectors with high emissions – such as utilities and transportation – require capital to invest in greener technologies. This column analyses the tension […]
In Italy, criminal organisations infiltrate municipal bodies to control public resources and manipulate elections. Detecting this infiltration, however, is difficult. This column proposes a machine-learning model that can predict mafia infiltration before it becomes evident and flag ‘high-risk’ municipalities. Policymakers could then monitor high-risk municipalities more closely and implement stronger safeguards to prevent the misuse […]
Education is recognised as a crucial factor in breaking the cycle of poverty. This column examines how historical exposure to colonial public primary schools in Tunisia influences medium- and long-run literacy rates. It finds that increased enrolment of Tunisian students during the colonial period significantly boosted literacy decades later, while the enrolment of European pupils […]
