New evidence of strong but slow portfolio responses to equity premium changes

Standard portfolio theory predicts strong investor responses to changes in the equity premium, but empirical evidence has found much lower sensitivity. This column studies the

The inflation rate fell but many workers’ pay cheques did not keep up

Inflation in the US has receded from its 2022 peak. This column uses payroll records from 2016 to 2025 to show that many workers have

The bank collateral channel of monetary policy: Evidence from securities losses

Sharp increases in interest rates can reduce the market value of banks’ securities holdings and threaten financial stability. Using euro area data for 2022-2023, this

Debt service and fiscal sustainability

Debt sustainability analysis typically focuses on debt stocks and the interest rate-growth rate differential, but these are not perfect predictors of fiscal stress. This column

Don’t drain the swamp! Populism, bureaucracy, and economic performance

Populist leaders increasingly cast public sector experts, oversight bodies, and career civil servants as illegitimate ‘elites’ standing in the way of the popular will. But

Climate fairness, economic development, and Europe’s responsibility

The idea of equal cumulative emissions per person is simple: every individual should have an equal claim on the atmosphere regardless of where they live.

Mapping the world’s building regulations: new platform for smarter reforms

Every year, the world adds floor space equivalent to a city the size of Paris roughly every five days. Most of that construction happens in

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

AI, productivity, and work: Evidence from US firms

Real-time evidence from users can inform the current policy debates around artificial intelligence. This column reports on a survey of executives at typical US firms

One office day a month boosts remote team performance

Remote work has become a permanent feature of labour markets. But the question remains how to balance the benefits of remote work with the workplace