Faced with the prospect of the US government imposing higher trade tariffs, European consumers are rethinking what they buy. This column explores how European consumers are reacting to the 2025 US tariff hikes and the reasons behind their responses. European consumers are very willing to switch away from US products, and the more they earn, […]
Tariffs disrupt trade flows and influence prices, but their broader impact depends on how they are structured and the type of goods targeted. This column examines the economic implications of tariffs across the supply chain, with a particular focus on how different modes of retaliation to US tariffs impact economic activity, inflation, and trade. The […]
The conventional wisdom is that uncertainty leads to economic contractions, but recent evidence challenges this assumption. This column introduces two novel concepts of uncertainty – agreed and disagreed uncertainty. It shows that when uncertainty is accompanied by widespread consumer disagreement about economic conditions (disagreed uncertainty), the economy remains stable despite the elevated uncertainty. In contrast, […]
