Advances in AI are transforming the economy. Behind this wave of visible innovation lies a less visible but significant trend: the role of large technology firms – commonly referred to as ‘big techs’ – across the AI supply chain. This column analyses the AI supply chain and the market structure of every input layer, highlighting […]
Government spending on defence, particularly defence R&D, can have significant economic spillovers. This column argues that the forthcoming European defence build-up must include a long-term strategy to develop high-quality human capital. Military human capital development serves a dual-purpose role: it is crucial for the modern (largely non-combat) battlefield, and also valuable for long-run productivity growth. […]
As economies develop, it is often assumed that agriculture becomes less relevant—a small slice of GDP and a shrinking share of employment. But evidence from Europe and Central Asia tells a different story. Across countries stretching from Portugal to Uzbekistan, agriculture and the broader agrifood sector remain essential pillars of economic development, employment, trade, and […]
New technologies are changing how banks produce and provide financial services. These changes have implications for traditional banks, creating novel sources of systemic risk which could in turn pose regulatory and policy challenges. This column introduces a new report by the Advisory Scientific Committee of the European Systemic Risk Board that discusses the impact that […]
