The low-carbon transition requires substantial financial mobilisation, yet it is unclear whether banks’ public climate commitments represent real change or simply greenwashing. This column uses unique survey data from 335 banks across 33 emerging markets to examine their internal green practices and lending approaches. The authors find that climate-committed banks score substantially higher on green […]
There is general agreement that a currency’s safe-haven status can be gauged by its response to changes in financial volatility. This column documents how, in the months following the Trump administration’s “Liberation Day” announcement, the dollar switched from rising during periods of market volatility to falling, and thus appeared to switch from a safe-haven to […]
Stock market participation remains low, especially among the older, less affluent, and less educated households, despite its clear benefits for wealth preservation and growth. Although digitisation has reduced some barriers, many households remain disengaged. Using data from a Chinese investment platform, this column shows that digital nudges and financial education via the platform increase stock […]
Economic growth in Europe continues to lag behind that of the US, largely due to smaller productivity gains. This column uses a general equilibrium model to show that a more integrated capital market in Europe could strengthen investment by reducing the cost of capital (price effect) and encouraging the entry of investors more inclined to […]
UK CPI inflation in 1975 reached 25%, a period now known as the ‘Great Inflation’. This column uses a range of empirical and narrative evidence to illustrate the importance of fiscal policy in this period. While stabilising and reducing debt has been the primary peacetime fiscal policy objective for most of modern British history, this […]
Spot gold was trading around $3,680 per ounce on Tuesday after hitting a record $3,689.27 earlier in the session. Gold’s stellar rally to successive record highs shows every sign of continuing for the rest of the year, but a healthy correction is on the cards before breaching the $4,000 per ounce milestone in 2026, traders […]
Foreign direct investment (FDI) plays a critical role in the world economy. Global FDI flows averaged almost $2 trillion per year during the past decade, up to one-half of which have been directed to emerging market and developing economies (EMDEs) in recent years (figure 1.A). FDI inflows are an important source of private capital, especially for […]
Expanding funded pensions via auto-enrolment could boost long-term investment and saver security, allowing the EU to address its investment gap. The European Union faces a significant investment gap. Meanwhile, an ageing population is putting pressure on the EU’s predominantly unfunded pension systems. Insurance companies and pension funds sit at the intersection of these challenges: as […]
Financial markets are volatile, and research attributes this to highly variable and often irrational investor beliefs. This column uses a large-scale survey of Chinese retail investors to study the role of investor memory in financial decision-making. Combining free recall of market episodes and probed recall of personal returns, it finds that sharp crashes and dramatic […]
There is a growing push from certain quarters for the European Commission to weaken merger control in order to spur greater investment and innovation, higher productivity and growth, or the creation of European champions. This column argues that there are empirical and theoretical grounds to strengthen, rather than weaken, merger control, and offers suggestions to […]
