Safe debt financing: International spillovers and the benefits of fiscal policy coordination
Safe government bonds enjoy a discount known as the convenience yield. When a government issues more debt, it erodes this discount for itself and for
When the news you watch shapes the inflation you expect
Central banks lean on communication to anchor inflation expectations. But most households learn about the economy from the news rather than from policy statements, and
Rethinking the use of quantitative easing for macro stimulus
Quantitative easing has faced recent criticism for causing large central bank losses and contributing to the post-COVID inflation, raising the question of under what conditions
Dividend tax reforms: Why design shapes revenue and measured inequality
Governments increasingly look to capital income for both revenue and redistribution. This column compares two dividend tax reforms in Israel – a permanent rate increase
Debt service and fiscal sustainability
Debt sustainability analysis typically focuses on debt stocks and the interest rate-growth rate differential, but these are not perfect predictors of fiscal stress. This column
Technology adoption and labour shortages: Evidence from Britain’s Industrial Revolution
As populations in rich countries age and fewer youngsters enter the labour force, employers and politicians bemoan labour ‘shortages’. This column turns to historical evidence
Don’t drain the swamp! Populism, bureaucracy, and economic performance
Populist leaders increasingly cast public sector experts, oversight bodies, and career civil servants as illegitimate ‘elites’ standing in the way of the popular will. But
Dollar dips ahead of US inflation data, supported by rate outlook
Reuters poll forecasts U.S. headline inflation at 3.8%. The dollar remained in sight of 13-month highs on Tuesday ahead of U.S. inflation data, which will
A sober look at the case for common European Union debt
More EU debt will not lower public borrowing costs or deepen markets without fiscal-union features, permanent issuance and credible fiscal backstops. Proposals for common European
How large current account imbalances unwind: Evidence from historical adjustment episodes
Global imbalances are back in the policy debate. This column examines 70 current account adjustment episodes across 51 economies from 1980 to 2024 to discover
