The EU is adjusting its supply chains to mitigate risks and align with evolving trade and industrial policies. This column analyses trade patterns from 2021 to 2023 and finds that EU imports are shifting away from countries without trade agreements with the EU and gravitating both inwards and towards regional neighbours and distant partners engaged […]
Since 2021, developed countries have experienced a significant inflation episode. This column uses Decision Maker Panel data from UK CEOs and CFOs to study firms’ inflation perceptions and expectations around monthly official inflation releases. Firms’ expectations are most responsive when inflation coverage in the media is elevated, suggesting salience is a key issue, as the […]
Debates over rent control have a long history, with activists and economists highlighting both the benefits and drawbacks. This column revisits these arguments and examines empirical findings from Catalonia, where a recent rent-cap programme illustrates the policy’s consequential trade-offs. Though rent control can deliver short-run price relief, it also risks reducing supply and redistributing burdens […]
Labour markets in advanced economies react more strongly to economic downturns than those in emerging markets. A key reason is the higher prevalence of self-employment in emerging markets, which helps cushion job losses. This column presents new evidence on how this difference in employment composition shapes labour market responses to economic fluctuations. While self-employment plays […]
Living wages are an increasingly common policy tool for reducing poverty and improving the living standards of low-income workers. But until recently, there has been little evidence on how living wage clauses effect the largest spender in the economy – the government. This column utilises data from a firm operating in the low-pay service sector […]
Accurately predicting the labour market impact of trade shocks is a complicated endeavour. Using job match records merged with firm-level customs records and changes in potential tariffs following China’s WTO accession, this column shows how differential firm-level exposure to China’s accession led to concentrated earnings and employment losses in the US. However, labour market competition […]
The price fluctuations seen in housing markets since the COVID-19 pandemic have rekindled interest in the question of whether we can distinguish between ‘good’ housing expansions – those that do not pose macrofinancial stability risks – and ‘bad’ ones, which leave lasting damage on the real economy. This column uses a dataset of 68 countries […]
Daylight Saving Time – the biannual ritual of adjusting clocks forwards and backwards – has long been debated. Advocates argue it saves energy and promotes outdoor activities, while critics highlight its disruptive effects on health, productivity, and social routines. This column examines the health impacts, societal costs, and the outdated rationale behind the implementation of […]
Technological progress is typically expected to lighten the burden of work. But as artificial intelligence has been integrated into workplaces, early evidence suggests a paradox: instead of reducing workloads, many AI-equipped employees are busier than ever. This column examines the relationship between AI exposure, the length of the workday, time allocation, and worker satisfaction. Though […]
Geopolitical shocks are fracturing global trade, and thus challenging economic integration. Even historically sound trade partnerships are now being strained, threatening decades of cooperation. A new report from the European System of Central Banks argues that EU policy responses in this challenging environment must be data-driven and targeted. This requires enhanced cooperation among EU institutions, […]
