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
Trailing with a margin: Official macro forecasts in EU fiscal surveillance
Budgetary planning in the euro area involves a codified interaction between national governments and the European Commission where economic and fiscal forecasts play a crucial
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
Pension design and general public finances: Beyond baseline actuarial neutrality
The design of pension rules must take into account, through an actuarial neutrality approach, the adjustments to pension levels that are necessary in the case
Beyond military sales: The market premium on dual-use research and development
The sharp rise in European defence spending – driven by Russia’s full-scale invasion of Ukraine, President Trump’s re-election and the weakening of US security guarantees,
The European Union’s new fiscal rules: A fine line between brilliant masterpiece and another chapter of déjà vu
The 2024 reform of the European Union’s fiscal framework promises long-term sustainability through greater national ownership and country-specific medium-term expenditure paths. This column argues, however,
Swedish household debt is not too high: Look at solvency and liquidity, not debt to income
The Swedish authorities and international organisations often claim that household debt poses a threat to financial and macroeconomic stability, with reference to a high debt-to-income
Spending smarter: A powerful growth strategy
With high public debt and weak medium-term growth, finance ministries seek to do more with less. This column argues that efficiency gaps in public spending
The hidden cycle: How informality shapes fiscal policy and sovereign default
The informal sector tends to expand during economic downturns and contract in recoveries, and is also highly sensitive to fiscal policy. This column explores the
Reimaging public finance management: From spending control to delivering outcomes
For as long as governments have existed, so has public financial management (PFM). This approach has always been explicitly designed to ensure the efficiency and
