Why Wages Are Stuck Even When Labor Is Scarce

Daniel Moss. The chief economist at the Bank of England proposes that a culture of insecurity discourages workers from changing jobs and lets employers avoid giving raises. Πηγή: www.bloomberg.com πλήρες κείμενο  

Underemployment in the US and Europe

David Bell, David Blanchflower. The most widely available measure of underemployment is the share of involuntary part-time workers in total employment. This column argues that this does not fully capture the extent of worker dissatisfaction with currently contracted hours. An   […]

Less dynamic growth amid high uncertainty: The Commission’s Autumn 2018 Forecast

Marco Buti, Björn Döhring GDP growth has become more uneven globally, and has shifted into a lower gear in Europe. So it is unsurprising that commentators have started warning about a more severe downturn. The Commission’s autumn 2018 European Economic   […]

The consequences of Italy’s increasing dependence on domestic debt-holders

Jan Mazza Bruegel’s updated data set of sovereign bond holdings illustrates how a rising share of Italian debt is held by domestic investors – a development with particularly significant implications, in the context of the Italian government’s disagreement with the   […]

William Nordhaus and the costs of climate change

Kenneth Gillingham William Nordhaus of Yale University has been jointly awarded the 2018 Nobel Prize in Economic Sciences with Paul Romer for ‘integrating climate change into long-run macroeconomic analysis’. This column, written by a co-author and Yale colleague, outlines how   […]

Subsidising growth: An argument for pro-business policies in emerging markets

Oleg Itskhoki, Benjamin Moll. From a neoclassical perspective, export promotion and comparative advantage policies are unambiguously detrimental. This column extends the standard growth model with financial frictions to explore how such policies affect a country’s development trajectory. Results show that the   […]

Global trends in interest rates

Marco Del Negro, Domenico Giannone, Marc Giannoni, Andrea Tambalotti Interest rates are at their lowest levels of the last 150 years in virtually all advanced economies. This column argues that this unprecedented environment reflects secular global forces that have lowered   […]

Forex intervention and reserve management in Switzerland and Israel since the financial crisis: Comparison and policy lessons

Alex Cukierman The size and nature of an economy have a crucial influence on the measures that can be taken in response to major shocks. This column investigates the forex interventions taken by Switzerland and Israel – two small, open   […]

Sovereign money: A challenge for science

Hans Gersbach. There has been an intense academic and policy debate on what monetary architecture is the most appropriate recently, but many issues are still unresolved. This column looks at the circumstances under which the current system and the sovereign   […]

Bank performance under negative interest rates

Jose A. Lopez, Andrew Rose, Mark Spiegel. Many countries have now adopted negative nominal interest rates. The column uses data on 5,000 banks affected by this policy to conclude that, while their net income has not fallen, strategies to increase   […]