EU income inequality decline: Views from an income shares perspective

Zsolt Darvas. Over the past decade, the income share of low earners has increased in the EU while that of top earners has slightly declined. Although the upward convergence of the impoverished central European population is impressive, the southern European   […]

Life after default: Private versus official sovereign debt restructurings

Silvia Marchesi, Tania Masi. Euro area governments have just negotiated a debt relief agreement for Greece, but without face-value debt reduction. This column argues that specific characteristics of sovereign debt renegotiations have significant economic implications. When debt relief operations involve write-offs, the   […]

Global market power and its macroeconomic implications

Federico Diez, Daniel Leigh, Suchanan Tambunlertchai. The rise in the market power of large firms is assumed to affect economic activity, but measuring either market power or its effects is challenging. Based on firm-level data for 74 countries, this column   […]

Global financial cycles and risk premiums

Òscar Jordà, Moritz Schularick, Alan Taylor, Felix Ward. Asset markets in advanced economies have become more integrated than ever before in the history of modern finance. This is especially true for global equities starting in the 1990s. This column argues   […]

‘Second-generation’ fiscal rules: From stupid to too smart

Xavier Debrun, Luc Eyraud, Andrew Hodge, Victor Lledo, Catherine Pattillo. Less than five years into the great euro experiment, the president of the European Commission at the time judged Europe’s limit on public deficits to be “stupid”. A more intriguing question,   […]

Monetary policy and inequality: A new channel

Juan Dolado, Gergo Motyovszki, Evi Pappa. There is ongoing debate over the welfare implications of the unorthodox measures adopted by central banks in the wake of the Global Crisis. Using US data, this column explores the implications of monetary policy   […]

A genie in a bottle: Inflation, globalisation, and competition

Dan Andrews, Peter Gal, William Witheridge. Low inflation at the same time as rising global competition has led to a debate on the importance of globalisation for domestic inflation. This column suggests that greater participation in global value chains has   […]

The 1990s trade and wages debate in retrospect

Adrian Wood. Two decades ago, the economics profession concluded that trade with developing countries was not seriously hurting unskilled workers in developed countries. This column argues that the debate from which that consensus emerged came to an end prematurely. Even   […]

The curse of persistently low real interest rates

Jan Willem van den End, Marco Hoeberichts. Persistent low interest rates prompt the question of whether the natural, or equilibrium, rate of interest has similarly shifted downwards. This column uses data for seven OECD countries to explore how low interest   […]

Stabilising the real economy increases average output

Karl Walentin, Andreas Westermark The Great Recession has spawned a vigorous debate regarding the potential benefits of stabilising the real economy. This issue takes on additional importance as the current economic situation in some countries, including the US, seem to   […]