A tale of two financial centres: Brexit uncertainty and the fragility of cross-border capital flows
The UK vote to leave the EU in 2016 led to an immediate rise in economic policy uncertainty. This column examines how Brexit-related policy uncertainty
The venture capital challenge for Europe
In recent decades, European firms’ share of global venture investment activity has remained flat or even declined. This gap is linked to a lower rate
The EU fiscal framework undermines innovation and security
European member states may now exceed deficit limits if the borrowing finances defence. This column argues that this fiscal exemption is economically incoherent: it subsidises
EU securitisation needs a more market-based approach
The EU is updating its regulations on securitisation, but it still has a long way to go if it wants to emulate the strengths of
European defence governance and financing
In a context of shifting US commitments, external threats, and global competition over trade, technology, critical minerals, talent, and intellectual property, Europe’s lack of defence
The economic impact of European capital market integration
Economic growth in Europe continues to lag behind that of the US, largely due to smaller productivity gains. This column uses a general equilibrium model
Rethinking exchange rate flexibility in the post-Bretton Woods era: Evidence from a new index
The collapse of the Bretton Woods system has traditionally been cited as heralding a major shift towards floating exchange rates. The extent of this transition
The local effects of artificial intelligence labour investments: Evidence from the municipal bond market
The long-term effects of artificial intelligence are still unknown, as productivity benefits may be compromised by unintended costs. This column assesses the local effects of
