Mapping the household-level transmission of monetary policy
The monetary tightening that followed the post-pandemic inflation episode has revived long-standing debates about how monetary policy affects households. This column uses a survey of
Beyond the 3 Percent Fiscal Deficit Rule: What India’s States Reveal About Fiscal Discipline
India’s states began adopting Fiscal Responsibility Laws (FRLs) in the mid 2000s to rein in deficits, put debt on a sustainable path, and restore fiscal
Why liquidity evaporates when it is most needed
A common feature of flash crash episodes in financial markets is that liquidity vanishes precisely when it is most needed. This column argues that this
How X’s algorithm shifts political attitudes
Algorithms curate what users of social media see, raising concerns that they may distort attitudes and affect social and political outcomes. This column reports on
When war weakens democracy
Wars do not end when the fighting stops. This column uses data covering 115 conflicts and 145 countries over the past 75 years to show
Why information campaigns may backfire: Voter heterogeneity and network effects
Political information campaigns that perform well in focus groups and pilot studies may backfire when applied at scale. This column uses a field experiment in
Brexit migration shifts: Benchmarking the UK to Germany
Brexit has been one of the most consequential institutional shocks to a major European economy in recent decades. This column examines how Brexit reshaped the
Spending smarter: A powerful growth strategy
With high public debt and weak medium-term growth, finance ministries seek to do more with less. This column argues that efficiency gaps in public spending
The impact of interest: How loan rates shape firm investment
Monetary policy moves aggregate investment, but the underlying drivers remain unclear. This column opens the black box with a German firm survey. A one percentage
Conditional budgeting: Striking a balance in EU economic governance
In July, the European Commission fired the starting gun on the negotiations of the next Multiannual Financial Framework – the EU’s budget. Against a tough
