government - Global Business and Finance Magazine

The high price of the fight against inflation: The case of the euro area

GLOBAL BUSINESS AND FINANCE MAGAZINE
May 5, 2025
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The fight against inflation has largely been won in the euro area, after a sharp but short-lived inflation episode over 2021-2023. This column argues that energy prices can explain the dynamics of inflation over the recent period better than the interest rate policy of the ECB. At the same time, higher interest rates led to […]

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Tariffs cannot fund the government: Evidence from tariff Laffer curves

GLOBAL BUSINESS AND FINANCE MAGAZINE
April 28, 2025
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Until the late 19th century, states raised most of their government revenues from import tariffs. This column asks whether the practice could work today. A side effect of taxes is that they discourage the economic activity that they are assessed on. Tariffs are taxes on imports and no different: they shrink trade. The authors allow […]