Productivity, firm size, and why distortions hurt developing economies
In many developing countries, productive firms remain too small, while less productive firms are too large. Such misallocation contributes to losses in aggregate productivity. This
FDI and growth in the age of global value chains
Existing evidence indicates that foreign direct investment promotes growth only when host economies have the human capital and deep financial markets to absorb spillovers. This
Drivers of international primary income balances
Financial globalisation since the 1990s has led to large holdings of cross-border assets and liabilities in many countries. This column analyses the yields on assets
The state of competition: Why market power has risen – and why antitrust alone won’t fix it
There is intense debate over the origins and implications of rising market power and declining business dynamism across developed economies. This column argues that a
Manufacturing work beyond manufacturing industries: Rethinking structural change in Germany
Manufacturing employment in advanced economies is widely viewed as being in long-term decline. Using German administrative data from 1975 to 2019, this column shows that
House prices in big cities cannot be expected to come down any time soon
House prices have increased sharply in many advanced economies, often leading to populist revolt and social crises. This column argues that agglomeration externalities foster urbanisation
Demographic change: Headwinds for economic growth
With fertility rates falling and populations ageing worldwide, the impact of demographic change on economic prosperity has become a central policy concern. This column uses
The granular origins of inflation
Textbook monetary economics views inflation as fundamentally driven by aggregate shocks, such as money supply or policy rates. This column presents empirical evidence that inflation
When loss strikes twice: Health shocks and household financial distress
While many advanced economies shield their citizens from the most severe direct medical costs of illness, less is known about how households cope with income
From the China Shock to the global relocation of production: Inequality consequences
Globalisation has raised living standards worldwide but has also fuelled concerns that international competition is eroding middle-class incomes and widening inequality within countries. The column
