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Finance Banking Featured News World

The economic impact of European capital market integration

Economic growth in Europe continues to lag behind that of the US, largely due to smaller productivity gains. This column uses a general equilibrium model to show that a more integrated capital market in Europe could strengthen investment by reducing the cost of capital (price effect) and encouraging the entry of investors more inclined to […]

World Economy Featured News trade

China’s electronics export juggernaut and lessons for the US

In 2021, China’s electronics exports exceeded those of the other five leading exporters combined. This column analyses the rise of China as a centre for electronics manufacturing. It argues that the key drivers of growth were intense competition, education that facilitated technology transfer, and infrastructure development. However, China’s nonlinear innovation model also leaves it dependent […]

poverty Employment Featured World

How wage inequality affects the labour movement

The negative correlation between inequality and unionisation rates in the US has been extensively documented, but while the other direction of causality – the impact of inequality on the labour movement – has also been theorised, it has not been empirically tested. This column uses three distinct research settings to show how rising occupational wage […]

trade Business Featured News World

The ripple beyond borders: Indirect effects of US export controls on Japanese firms

As part of the ongoing US-China trade war, since 2020 the US has restricted the exports of cutting-edge semiconductors from third countries to Huawei. This column analyses the indirect effects of US export regulations on exports of Huawei suppliers in Japan. Although Japan itself did not export cutting-edge semiconductors, exports of affected suppliers declined in […]

Economy Featured Finance News World

Filtering labour market data optimally to detect recessions early and accurately

The timely detection of recessions is critical for policymakers to make informed decisions. This column presents an algorithm for detecting recessions early using labour market data. By combining unemployment and vacancy rates, it shows that a less noisy signal can be obtained compared to relying on a single measure like industrial production. Current official prediction […]

Finance Economy Featured News World

Europe must not waste its currency moment

Escalating geopolitical tensions, trade wars, and volatile policy shifts are reshaping the rules of global commerce and finance and bringing the dominance of the US dollar into question. This column argues that Europe has a historic opportunity to elevate the euro into a trusted global anchor of stability and thus rebalance a global monetary order […]

World Featured Finance News trade

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, calibrated to the US economy, which illustrates how a uniform import tariff generates both expansionary effects upstream and contractionary effects downstream and is highly inflationary, reflecting its hybrid nature as […]

tax Banking Featured Finance

The importance of information for tax design: Evidence from the French wealth tax

Many countries are considering introducing or reforming their wealth tax policies. This column studies the effects of a French wealth tax reform, which reduced reporting requirements, on taxpayer behaviour. The scaling back of reporting requirements had large negative effects on tax compliance, with 35% of wealth taxpayers missing in affected brackets and evading 10% of […]

Gender Featured Lifestyle World

Default to mum: How institutions quietly shape gender roles in parenting

Mothers continue to shoulder the majority of childcare responsibilities even in dual-earner households, contributing to gender gaps in earnings, labour force participation, and career advancement. This column uses an experiment targeting over 80,000 US school principals to show that when a school needs to contact a parent, the mother is 1.4 times more likely than […]

trade Featured Finance News World

Dealing with Trump: Dos and don’ts

Trade negotiations between the US and the EU are entering a crucial stage. This column argues that, faced with a highly uncertain geopolitical situation, the EU should adopt vis-à-vis the US a negotiating approach compatible with its ambition of enhancing its political autonomy and economic resilience on the one hand, and building international alliances able […]