The cause of economic stagnation
Economic growth depends on free market policies. Patrick Minford argues that the UK’s economic stagnation is not caused by Brexit but by damaging government policies
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MACROECONOMICS
Examining how the overall economy—the markets, businesses, consumers, and governments—behave, focusing on long-term economic growth and shorter-term business cycles
The current state of the world economy
The global economy has shown resilience despite heightened uncertainty, supply side shocks, and geopolitical risks, but downside risks remain significant. Andrew Bailey says that sustaining growth and financial stability will require innovation, openness, international cooperation, and strong global institutions
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Leverage lies in marginal demand
Europe is the largest external holder of US federal debt. Paola Subacchi and Paul van den Noord discuss whether Europe’s $12.6 trillion holdings of US assets can be used as leverage if relations with Washington sour
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Central bank digital currency and monetary sovereignty
Calls for a digital euro increasingly invoke monetary sovereignty. Lucrezia Reichlin argues that an effective defence of monetary sovereignty will continue to depend on regulation, fiscal capacity, and the ECB’s willingness to absorb risk when it matters
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Global imbalances in a more fragmented world
Andrew Bailey emphasises the need for robust international cooperation, supported by multilateral institutions, and why they need to be supported by an international rules-based system, setting out some of the conditions that help make this system work and what challenges they might face
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President Trump’s tariffs as fiscal folly
In 2025 the US government underwent a large fiscal switch. Kimberly Clausing and Maurice Obstfeld evaluate tariffs as a broad tool of fiscal policy, reviewing both tax policy and macroeconomic considerations, and concludes that this fiscal switch will leave most Americans worse off
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Challenges to financial stability
Andrew Bailey reflects on the reforms made to the financial system since the 2008 financial crisis. He addresses the challenges these reforms face in an ever-changing world and says the regulatory system of the future must be constantly assessed and adapted as needed
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Europe’s fight should begin with the struggle against hesitation
The EU is engaged in an unprecedented struggle for independence, values and democracy in a world shaped by the re-emergence of imperial ambitions. Simone Tagliapietra says Ursula von der Leyen is right to say Europe is in a ‘fight’ around competitiveness and values, but it may lack the right pugilistic attitude
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Strategic autonomy for Europe requires economic growth
The US willingness to weaponise trade makes clear that transatlantic economic relations have become entirely transactional. Luis Garicano argues that Europe must respond to US tariffs with economic strength: faster productivity growth, cheaper energy, a genuine continental market, and tech leadership
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The financial sector and global dollar system
The US administration’s approach to financial markets mixes deregulatory policies with a range of other policies that are largely without precedent. Gary Gensler, Lev Menand and Joshua Younger catalogue the relevant policy shifts and consider how these shifts may impact financial stability, capital markets, and the global dollar system
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