Europe suffers not so much from a ‘flight’ of savings as from insufficient allocation to equities
Europe exports a large surplus of savings outside the continent each year. This column argues that this should not be interpreted as a capital ‘flight’:
Global trade linkages and the cross-country distribution of the gains from AI
Productivity gains from AI are expected to be significant, but how international trade shapes the cross-country distribution of these gains remains an open question. This
Defence innovation and procurement reform: an empirical evaluation of the US Defense Innovation Unit
Battlefields are evolving rapidly, with new technologies reshaping military strategy and tactics. Many of the new technologies originate in firms outside the traditional defence sector,
Macroeconomic policies for AI
While some observers argue that artificial intelligence may lead to large productivity gains, there are also concerns that it may lead to technological unemployment and
How to get the Green and the Deal: Recalibrating EU industrial policy
Europe is recalibrating its industrial policy in response to external challenges including China’s state-driven overcapacities and protectionist US tariffs, but also as an opportunity to
Capitalising on Europe’s strengths
In recent years, the European economy has shown remarkable resilience, whilst continuing to transform. This column reveals how EU firms have adapted supply chains and
Central bank digital currency, the future of money, and politics
A number of concerns have been raised regarding retail central bank digital currency. These range from competition and innovation, privacy issues, and monetary sovereignty. This
Ray of hope? The rise of solar energy in China
China’s solar industry is a poster child for the country’s economic rise over the last four decades. The output of Chinese solar grew by 76%
AI and the distribution of income between capital and labour
The swift rise of artificial intelligence is raising fundamental concerns about the future of work. This column uses data from 238 regions across 21 European
The venture capital challenge for Europe
In recent decades, European firms’ share of global venture investment activity has remained flat or even declined. This gap is linked to a lower rate
