The unprecedented wave of state aid to firms across the EU during the COVID-19 pandemic raised questions about who benefited and how effective these interventions were. This column uses firm-level data from Spain and Italy – two of the countries worst affected by the pandemic – to evaluate the economic impact of aid. Targeted support […]
Tariffs affect both supply and demand, possibly with contrasting effects on prices. This column shows that renewed US-China tensions could redirect Chinese exports to the euro area, boosting supply and lowering prices. Using detailed trade and inflation data, it estimates that such diversion could cut core euro area inflation by 0.3 percentage points over two […]
A growing number of urban areas around the world face water scarcity. Focusing on the prolonged drought that Cape Town experienced from 2015 to 2018, this column examines how adaptation shaped outcomes for the city’s residents and for its municipal water utility. While policy measures including higher prices and usage restrictions saved the city from […]
Trade negotiations between the US and the EU are entering a crucial stage. This column argues that, faced with a highly uncertain geopolitical situation, the EU should adopt vis-à-vis the US a negotiating approach compatible with its ambition of enhancing its political autonomy and economic resilience on the one hand, and building international alliances able […]
Russia’s 2022 invasion of Ukraine sparked Europe’s largest refugee crisis since WWII. Unlike past waves of migrants, Ukrainian refugees gained immediate labour market access through the EU’s Temporary Protection Directive, offering a unique policy test. This column finds that the resulting labour force increase had no economically meaningful impact on employment, unemployment, or inactivity rates […]
The suite of indicators measuring the Cost and Affordability of a Healthy Diet, known as “CoAHD”, was launched in 2020 and is now an established set of metrics for tracking food and nutrition security worldwide. The indicators are jointly produced and published semiannually by FAO and the World Bank and featured in The State of Food Security and Nutrition in […]
As the debate around industrial policy intensifies, there is broad consensus on the rationale for government support to encourage private sector innovation. Economy-wide returns from research and development (R&D) in the private sector can be much greater the returns reaped by private firms alone. That’s because the knowledge generated by R&D often spills over to […]
Creative industries, such as film, music, fashion design and advertising are a growing important source of economic activity globally, generating around $2 trillion of revenues and supporting over 50 million jobs, especially for young people. Yet they struggle to get the financing they need to reach their full business potential. The Power of Creative Industries […]
Cities in low- and middle-income countries are growing fast—but their ability to finance the infrastructure and services needed to support people and jobs is lagging behind. The consequences are real: without better roads, transit, water, energy, and housing, cities struggle to deliver basic services or attract investment, limiting job creation and economic opportunity. That’s because urban infrastructure […]
Despite a succession of shocks since 2020, the global economy has held up remarkably well—so far. But the margin for error is dwindling. Total global debt is now nearly 25 percent higher than it was on the eve of the COVID-19 pandemic, when it already was at an all-time high. This overhang could undercut all economies’ ability to shield […]
