The dollar hovered near a six-week high on Friday ahead of a payrolls report that could decide the path of U.S. interest rates, while the yen headed for its weakest weekly performance since 2016, hit by uncertainty over Japan’s monetary policy. The dollar was also boosted by safe-haven demand as investors weighed widening Middle East tensions and […]
Asian stocks retreated on Friday while oil prices headed for their sharpest weekly gain in more than a year, as escalating tensions in the Middle East kept markets on edge ahead of a U.S. jobs report later in the day. U.S. President Joe Biden said on Thursday that the U.S. is discussing strikes on Iran’s oil facilities […]
In spite of a commendable decline in stunting rates over the past 30 years, 148 million children worldwide remain stunted. The condition impairs their growth, health, development, and education and has long-term consequences for their future wellbeing. In addition, one in seven children globally were born with low birthweight in 2020 and 45 million suffered […]
It’s 7 AM, and the rumbling of a garbage truck jolts you awake. The beeping as it backs up, the mechanical whirr as it hoists and tips a dumpster, and the clatter of glass and metal tumbling into the truck are all part of the morning’s symphony. But waste collection is more than just noise and […]
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 […]
