The implications of climate change for monetary policy
Climate change and the transition to net zero are reshaping the macroeconomy, with important implications for monetary policymakers’ core price-stability objectives. As physical hazards become
Financial engineering is no substitute for interest rates: Lessons from Türkiye
The Turkish central bank cut interest rates over 2021-2023, on the politically driven view that higher rates cause inflation. This column analyses the policies used
The inflation rate fell but many workers’ pay cheques did not keep up
Inflation in the US has receded from its 2022 peak. This column uses payroll records from 2016 to 2025 to show that many workers have
Why Europe needs Eurobonds
The 2024 reform of the EU fiscal framework makes fiscal adjustment more country-specific and less procyclical. However, it does not eliminate two fundamental tail risks:
Why more information can make macroeconomic expectations less accurate: Global evidence from 47 countries
Households do not simply choose how much macroeconomic information to acquire; they choose among sources that differ in representativeness and credibility. Using a survey of
The exorbitant privilege of the periodic table
Trade in critical metals essential for electrification has become centred on China over the last three decades. This column introduces a new framework in which
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
IMF strategy chief urges countries to maintain price stability
Christian Mumssen, the fund’s new director of strategy, cited a rapid succession of major shocks to the economy in recent years. The International Monetary Fund’s
Gold bounces from two-week low, markets await US inflation data
Gold bounces from two-week low, markets await US inflation data. Gold ticked higher on Tuesday after hitting a two-week low, while focus was on the
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
