Advances in AI are transforming the economy. Behind this wave of visible innovation lies a less visible but significant trend: the role of large technology firms – commonly referred to as ‘big techs’ – across the AI supply chain. This column analyses the AI supply chain and the market structure of every input layer, highlighting […]
The immediate effects of climate-related risks are particularly relevant for the financial sector. Climate stress tests, which are often carried out over three to five-year periods, have become crucial for assessing the impact of shifting weather patterns and evolving climate policies on both the economy and the financial system. This column highlights the key findings […]
Since mid-2021, the euro-area economy has gone through several shocks, leading to the highest inflation since the creation of the European Monetary Union. A forceful and persistent response from the European Central Bank, grounded in the monetary policy framework it agreed in 2021 ahead of the inflationary episode, has succeeded in bringing inflation down and […]
A thriving economy is built on talent. Across Africa, the job market faces a growing shortage of highly skilled professionals in critical fields such as engineering, health, agriculture, digital technologies, and others. A decade ago, a survey by the Africa Investors Council revealed that major companies struggled to recruit qualified talent in these areas, while […]
As economies develop, it is often assumed that agriculture becomes less relevant a small slice of GDP and a shrinking share of employment. But evidence from Europe and Central Asia tells a different story. Across countries stretching from Portugal to Uzbekistan, agriculture and the broader agrifood sector remain essential pillars of economic development, employment, trade, […]
In the event of dysfunction in dollar funding markets, the Federal Reserve can supply liquidity through standing central bank swaps. This column considers a scenario in which the Fed declines to extend such credit. It argues that 14 major central banks hold roughly $1.9 trillion in US safe assets. They could form a dollar coalition […]
The recent surge in inflation has led to a significant increase in the frequency of price changes. This column argues that price flexibility has an impact on the effectiveness of monetary policy. In high inflation periods, frequent price changes make monetary policy more effective in reducing inflation with less impact on economic activity. Therefore, monetary […]
A growing body of research highlights the importance of mobility in the global knowledge economy, but has largely focused on high-income countries. This column addresses the crucial role of international labour mobility in fostering innovation in Africa, demonstrating that short-term visits, especially for business or professional purposes, significantly increase the likelihood of firms innovating in […]
Floods are the costliest type of natural disaster in Europe, but little is known about whether adaptation investments such as flood defences can shield the economy. This column studies how floods affect output and prices at the sectoral level in England and the effect of adaptation investments. Floods affect sectors differently, acting as both supply […]
Women are significantly underrepresented in entrepreneurship in all OECD countries, with implications not only for gender equality but also for aggregate productivity. This column uses Danish data covering nearly 800,000 individuals to demonstrate that early exposure to entrepreneurship increases the likelihood that women become entrepreneurs later in life. Moreover, the women who follow entrepreneurial pursuits […]
