The prosperity and economic transformation of Europe and Central Asia (ECA) hinge on making energy reliable and affordable for all. Across the region, many countries are prioritizing energy efficiency and renewable energy as part of their development strategies —not only to strengthen energy security, but also to create jobs, foster innovation, and lower costs. Renewables […]
Forecasts underpinning budgetary plans have a well-documented impact on fiscal performance especially when policymakers view the world through rosy lenses. Combined with inertia in the implementation phase, optimism contributes to a possible deficit bias and the accumulation of government debt. This column introduces the new Forecast Tracker of the Secretariat of the European Fiscal Board, […]
Mothers continue to shoulder the majority of childcare responsibilities even in dual-earner households, contributing to gender gaps in earnings, labour force participation, and career advancement. This column uses an experiment targeting over 80,000 US school principals to show that when a school needs to contact a parent, the mother is 1.4 times more likely than […]
Recent evolutions in US attitudes and policies have raised questions about the future of the dollar’s role in the global economy. This column explores a hypothetical scenario in which the world is deprived of the dollar as its global safe asset. In such a world, interest rates would be higher and more volatile. Liquidity would […]
The new targets, to be formally included in the government’s upcoming fiscal and economic policy guidelines in June, represent a sharp escalation from the previous goal of 100 trillion yen by 2030 Japan is set to raise its 2030 foreign direct investment target by 20% and push the figure as high as 150 trillion yen […]
Public debt-to-GDP ratios have climbed to historic highs in most advanced economies. This column studies the connection between productivity growth, fiscal policy, and public debt. Using a theoretical model, it argues that a feedback loop is possible between fiscal policy and growth. Large primary surpluses are associated with fiscal distortions which depress investment and productivity […]
South Asia is grappling with significant fiscal challenges that affect its governments’ ability to provide essential public services. Although its tax rates are often higher than average, the region struggles with low tax revenues. This blog explores the reasons behind these low revenues and discusses potential solutions to bridge the revenue gap and strengthen South […]
Despite headlines dominated by threats and implementations of US and retaliatory tariffs since President Trump’s inauguration, it was not until his “Liberation Day” announcement on 2 April that equity prices fell significantly. This column asks why equity prices reacted so slowly to the elevated trade policy uncertainty that followed immediately after Trump’s election. Historical evidence […]
As populations age, the demand for long-term care will increase dramatically. This column argues that markets for long-term care insurance in the US have failed to expand, despite nearly five decades of development in part because individuals too often rely on self-insurance or Medicaid – a means-tested programme that requires they spend down their assets […]
Strong coordination of wage setting has been maintained in Nordic countries through pattern bargaining. The tradables sector sets the first agreement, which then serves as the nationwide norm for subsequent wage increases. This column outlines that a key motivation for this model is to maintain international competitiveness and keep the wage share constant over time. […]
