The adjustment of the Danish labour market to AI has begun
Policymakers are asking whether generative AI is reshaping labour demand, and the literature has found mixed results so far. This column links Denmark’s official IT-use
Training novices to think in the age of large language models
Whether teaching a cognitive skill remains valuable in this era of AI is a crucial question in education and for firms. This column reports on
Beyond flows: How natural gas supply risk fuels inflation
Europe’s output losses proved limited following the 2022 cutoff of Russian gas flows, yet inflation rose sharply. This column uses weather variation and gas-market events
How minimum wages reshape firms and their productivity from within
How far can minimum wages rise without damaging jobs and output? This column uses evidence from France to show that firms respond not only by
How exchange rate policy reshapes global supply chains and productivity growth
Global current account imbalances are widening again. This column argues that currency undervaluation, supported by reserve accumulation under capital controls, can permanently reshape industrial structure
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
