The growing impact of political risk on financial markets
Risk associated with broad political changes can be quantified with a globally priced factor common across stocks, bonds and currencies. Political risk is increasingly driving
Geopolitical oil price shocks: Why these shocks hit harderGeopolitical oil price shocks: Why these shocks hit harder
When geopolitical crises strike, oil prices often surge, with consequences that extend far beyond energy markets. This column shows that oil price shocks associated with
Using global shocks as a laboratory to study executive pay
It is often claimed that executives reap rewards from favourable market tailwinds they did nothing to create. This column uses two decades of Danish data
Fast payments and digital ID: Making everyday payments safer, simpler, and more efficient
Imagine this situation – María runs a small grocery shop, and one afternoon she receives a message asking her to pay a supplier urgently through
Mortgage borrower actions dampen the impact of higher rates on monthly payments
The surge in inflation following the COVID-19 pandemic prompted many central banks to raise interest rates sharply. This column combines data from a large German
The nitrogen paradox: Every sweet hath its sour
When the philosopher and poet Ralph Waldo Emerson wrote in 1841, “Every sweet hath its sour; every evil its good”, nitrogen was surely the last
When war weakens democracy
Wars do not end when the fighting stops. This column uses data covering 115 conflicts and 145 countries over the past 75 years to show
Why inflation may respond faster to big shocks: The rise of state-dependent pricing
Macroeconomic models distinguish time-dependent pricing, where firms change prices at fixed intervals, from state-dependent pricing, where firms change prices in response to changing demand or
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
Better regulation in the European Union needs a fresh start
A solid EU better regulation framework is undermined by gaps in coverage and quality, making consistent application and stronger oversight essential. Despite having developed a
