Navigating the 2022 inflation surge: Lessons for monetary policy frameworks
The 2022 global inflation surge tested inflation-targeting frameworks under severe supply shocks. This column shows that, despite earlier and sharper tightening, inflation targeting central banks
The unbearable lightness of promises
When reforms are judged by their plans rather than their impact, they risk drifting into the lightness of promises unmet. An “outcome reflex” mindset restores gravity—anchoring
Europe’s dependence on US foreign military sales and what to do about it
Europe’s reliance on US arms raises autonomy concerns, as security worsens and leaders aim to cut strategic and technological dependence. Worries about Europe’s dependence on
Wall Street’s bull market nears three years old; history shows it may still have life
The U.S. stock market’s bull run is almost three years old, but if history is a guide, that would make it only middle-aged. The S&P
Rational inattention and information provision experiments
Surveys with information provision experiments have become popular in economics. This column introduces an information provision experiment in a model of rational inattention – where
Mobile phone ownership is widespread. Why is digital inclusion still lagging?
The increasing use of mobile phones is making a range of digital resources more widely available to people across the income spectrum. Eighty-four percent of
Communicating monetary policy by a committee: Echoes that move markets
Central banks rarely speak with one voice. At the Federal Reserve, for instance, each official brings a distinct perspective, and markets parse every speech for
How central bankers speak about climate and what this means for financial markets
Central banks have increasingly engaged with climate-related topics in their public communication, but little is known about the drivers and effects of this shift. This
Inflation targeting: Its current state and key challenges
Inflation targeting has emerged as the dominant monetary policy framework in advanced and emerging market economies. This column discusses three main challenges faced by inflation-targeting
Rethinking social protection sustainability: What people want (and don’t want)
Population ageing makes it harder for governments to finance programmes like public pensions and long-term care. But policy responses, such as tightening programme eligibility and
