Examining how the overall economy—the markets, businesses, consumers, and governments—behave, focusing on long-term economic growth and shorter-term business cycles
Predictions of the effects of AI on the economy and society tend to focus on productivity growth, job losses, and shifts in the distribution of income. Karen Dynan, Douglas Elmendorf and Louise Sheiner examine various potential scenarios for the macroeconomic effects of AI on US fiscal policy
How the rise of AI matters for fiscal policy Read More »
The Paris Agreement provides a framework for international carbon trading. Georg Zachmann and Annabelle Weisser discuss the many questions that will arise, and argue that international carbon credits can support the EU’s 2040 target if buyers’ club rules and leverage ensure real mitigation gains abroad
International carbon trading: a strategic lever to boost global decarbonisation Read More »
Stablecoins are not an efficient way to strengthen the international role of the euro, says Christine Lagarde. The best solution to do so remains: deeper capital market integration through the savings and investment union and a stronger safe asset base
Stablecoins and the future of money: separating functions from instruments Read More »
Global efforts to tackle the climate and nature crises have not progressed as hoped, says Christine Lagarde. This sharpens the case for deeper analysis from the research and central banking communities to better understand the risks to price and financial stability
Climate, nature and monetary policy Read More »
Across developed countries there is a growing perception that social progress has stalled. Paul Johnson, James Banks, Tim Besley, Richard Blundell, Angus Deaton, Robert Joyce, and Debra Satz argue that stronger economic growth, more dynamic labour markets, and policies that help opportunities take root are essential to tackling inequalities
Challenging inequalities: how we got stuck and where we go next Read More »
Andrew Bailey argues that modern central bank independence is well-defined for monetary policy but incomplete, and highlights the challenges for a central bank’s financial stability mandate
Central Bank Independence – in need of further thinking Read More »
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
The cause of economic stagnation Read More »
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
The current state of the world economy Read More »
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
Leverage lies in marginal demand Read More »
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
Central bank digital currency and monetary sovereignty Read More »
