Economic impact of US tariff hikes: Significance of trade diversion effects
The 2025 US tariff increases varied significantly across most economies. This column argues that the economic impact of these tariffs will also not be uniform.
Easy money, easy spending: A new take on the resource curse
When wealth or income suddenly increases (‘easy money’), this may be directed towards unproductive ‘easy spending’. This column explores the relationship between conspicuous consumption and
Economic development, carbon emissions and climate policies
If economic activity is considered the primary driver of climate change through emissions of carbon dioxide, then supporting economic growth and fighting emissions would appear
How dirty air hurts economies in Europe and Central Asia and what can be done
Worldwide, air pollution is an “equal opportunity offender” impacting high-, middle-, and low-income countries. While low- and lower-middle-income countries bear the brunt of air pollution, middle-
A Three-Pronged Strategy Can Help Developing Economies Attract FDI and Unlock its Full Potential
Foreign direct investment (FDI) plays a critical role in the world economy. Global FDI flows averaged almost $2 trillion per year during the past decade, up
How developing countries can measure exposure to the EU’s carbon border adjustment mechanism
In January 2026, the European Union will require importers of certain carbon-intensive goods to pay for their products’ embodied carbon emissions. The policy, known as the
Strong Japan GDP lifts yen, dollar steady as rate cut fervour cools slightly
Dollar on course to end week flat against EUR; lower against JPY, GBP. The dollar was largely steady against the euro and British pound on
US budget deficit forecast $1trln higher over next decade, watchdog says
The Committee for a Responsible Federal Budget’s latest forecasts show a cumulative deficit of $22.7trln from fiscal 2026 to 2035. U.S. federal budget deficits will
How Donald Trump should have tackled the US trade deficit
The US trade deficits will have to be reduced materially to prevent a crisis down the road. This column argues that fiscal consolidation, in association
Strong Japan GDP lifts yen, dollar steady as rate cut fervour cools slightly
Dollar on course to end week flat against EUR; lower against JPY, GBP The dollar was largely steady against the euro and British pound on
