How AI can help detect warning signs of financial market stress
Predicting financial market stress is a significant challenge, as traditional models often fail to capture complex and nonlinear dynamics. This column highlights two recent advances
Multi-issuer stablecoins: A threat to financial stability
Stablecoins – digital tokens pegged to fiat currencies – have emerged as a major innovation in crypto finance, with broad implications for payments and international
US workers experience large month-to-month fluctuations in pay
Over the past decade, cities and states in the US have enacted ‘fair workweek’ laws to stabilise worker schedules. This column uses administrative data on
EU jobs and US trade: Navigating change
Trade uncertainty between the EU and the US – driven by the announcement of new tariffs and a volatile global economy – has raised concerns
Investment funds and euro disaster risk
Investment funds are important players in global financial markets. This column examines their behaviour and interaction with other investors during stress periods on European sovereign
When illusions of wealth shape the economy: Understanding pseudo-wealth, macroeconomic volatility, and social welfare
Pseudo-wealth is a perception of wealth that is not backed by real economic resources. When people have widely different beliefs, they create ‘wealth’ through betting.
