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:
Monetary policy under multiple financing constraints
A longstanding puzzle in monetary economics is that policy tightening has stronger effects than easing. This column shows that the multiplicity of financing constraints notably
Reciprocal sovereignty: A third constitutional tradition for Europe
The central constitutional question for Europe is how sovereign democracies can govern common goods together without creating a sovereign European state. This column proposes reciprocal
Not all reserves are born equal: Why the source matters for sovereign risk
Emerging market economies hold foreign exchange reserves to insure against currency crises and to cushion exchange rate movements. Reserves are generally associated with lower sovereign
Foreign currency funding risk and global financial stability
The Credit Suisse crisis in 2023 demonstrated that foreign currency funding vulnerabilities remain material even in advanced, well-regulated financial systems. This column introduces a new
What we can learn from public debt reductions in OECD countries
Public debt-to-GDP ratios have risen substantially over the past 25 years, and multiple spending pressures threaten to increase them further. This column outlines the lessons
Drivers of international primary income balances
Financial globalisation since the 1990s has led to large holdings of cross-border assets and liabilities in many countries. This column analyses the yields on assets
Tariffs, global imbalances, and the dollar
While the Trump administration has offered multiple justifications for imposing tariffs, none has been as prominently cited as the goal of reducing trade deficits. This
