Inflation targeting: Its current state and key challenges
Inflation targeting has emerged as the dominant monetary policy framework in advanced and emerging market economies. This column discusses three main challenges faced by inflation-targeting
The making of a supply shock: Tariff propagation via domestic production networks
President Trump’s “Liberation Day” announcement triggered a discussion of whether import tariffs can reduce trade deficits or boost certain industries. This column develops a model,
Households’ subjective expectations: Disagreement, common drivers, and reaction to aggregate shocks
Understanding how households interpret macroeconomic policy is vital to the effectiveness of central banks. This column demonstrates that the reactions of individual households frequently contradict
Ten challenges facing China’s economy
Depending on how it is measured, China’s economy is now the world’s largest or second largest. It is also the world’s second-most intertwined in terms
Tariffs and retaliation: A macroeconomic analysis
Implementation of the “Liberation Day” tariffs on the US’ trading partners would have far-reaching consequences for international trade patterns and the US and global economies.
Effects of monetary policy on labour income: The role of the employer
How do monetary policy shocks affect workers’ wages and employment? This column looks at the role that firms play in determining the wage and employment
