One global shock, many inflation paths: Inflation persistence after the Great Moderation
The post-COVID inflation surge was global, but inflation persistence was not. This column argues that the key difference lies in how strongly external shocks fed
AI to double data centre power and water consumption by 2030, UN researchers say
Unless governments heed the rising environmental costs of AI, the rapid rollout could also strain scarce land resources and create mountains of electronic waste, the
A more resilient Europe faces a renewed energy shock – but difficult trade-offs may resurface
The conflict in the Middle East has triggered a renewed energy shock for Europe. While the macroeconomic impact is currently expected to remain more contained
A smarter approach to electricity rationing
Ukraine’s grid operators have primarily relied on rotational outages to manage power scarcity, but this effectively functions as regressive tax on those least equipped to
Mapping the contours of Chinese policy transmission at home and abroad
China’s place within international trade networks and global supply chains makes the propagation of Chinese shocks a global phenomenon. This column discusses the channels of
Peering beyond the veil of aggregate bank lending rate dynamics: Insights into credit-level pricing and composition effects
During the recent tightening and easing cycle, the aggregate bank lending rate to firms in the euro area increased by less than the rise in
Geopolitics as a monetary shock: The ‘silent tightening’ in the European banking system
Geopolitical tensions have once again seized the centre stage of macroeconomic policy debates. From Russia’s ongoing war in Ukraine to instability in the Middle East,
Monetary policy transmission through cross-selling banks
When central banks raise or lower policy rates, banks typically pass these changes through only incompletely to the interest rates they pay on customer deposits.
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
Households’ inaction in the deposit market
The sharp rise in interest rates since 2021 has not been matched by equal increases in household savings rates in advanced economies. This column uses
