Private equity beyond the target: How buyouts reshape supply chains
The importance of private equity for euro area firms is increasing, with annual growth rates in assets under management exceeding 10%. Private equity buyouts affect
Historic monetary tightening, benign output dynamics: Rising R-stars across the Atlantic
Nominal interest rates increased significantly in the US and euro area following the post-pandemic inflation surge, yet economic activity and labour markets remained resilient. This
Forward guidance and the limits of public information
When nominal interest rates hit the effective lower bound, central banks turned to unconventional measures, with forward guidance emerging as a cornerstone of monetary policy.
Tokenised finance: Towards better markets?
Tokenised finance has moved from the margins of crypto markets to the centre of the policy agenda. Central banks, regulators, and market participants are debating
Fiscal populism and monetary policy rules
Populism may not only have contemporary but also long-term effects on the macroeconomy. Using data for advanced economies and emerging markets since 1960, this column
Anatomy of a rise: Monetary policy and the post-Covid surge in long-term interest rates
The sharp rise in long-term interest rates since 2020 is difficult to explain from slow-moving fundamentals. This column shows that narrow windows around nonfarm payroll
Some questions that a Bank of England review should ask
The Bank of England is approaching the 30th anniversary of operational independence and a wide-ranging review is likely. With growing political interest in the issue,
The implications of climate change for monetary policy
Climate change and the transition to net zero are reshaping the macroeconomy, with important implications for monetary policymakers’ core price-stability objectives. As physical hazards become
A nascent international financial channel of China’s monetary policy transmission
China is the world’s second-largest economy, and its monetary policy can affect global demand and trade. Using granular mutual fund data, this column finds that
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
