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   […]

The uncertain future of central bank independence

Otmar Issing The independence of central banks has again become a prominent subject in academia, politics and the media. However, this time, in contrast to the past, critical voices dominate. This column, taken from a recent VoxEU eBook, asks how   […]

Successful fiscal adjustments can also be achieved by raising taxes

Rasmus Wiese, Richard Jong-A-Pin, Jakob de Haan. Empirical research concludes that austerity measures that target spending are more likely to succeed than those that target taxation. This column argues that this result arises from a methodological flaw that assumes all   […]

A new classification of monetary policy frameworks

David Cobham. Monetary policy characterisations across countries rely on the availability of data, but while exchange rate classifications are well developed, the same is not true for domestic targets. This column introduces a new classification of the monetary policy frameworks   […]

International capital flows through the exchange market pressure lens

Linda Goldberg, Signe Krogstrup. The role of the global financial factor in the international monetary system has been well discussed, with some economists suggesting its role may in fact be overstated. This column argues that some of the empirical evidence   […]

The convergence in emerging market inflation

Kevin Daly, Loughlan O’Doherty. Recent years have seen emerging market economy inflation rates converge towards developed economy rates, as well as convergence between emerging markets. The sustained improved inflation performance in emerging markets has occurred even as unemployment in many of these economies has   […]

Foreign exchange interventions: Frequent and effective

Marcel Fratzscher, Lukas Menkhoff, Lucio Sarno , Tobias Stöhr. Central bank interventions in foreign exchange markets have long been viewed with scepticism by academics. This column examines foreign exchange interventions for a sample of 33 advanced and developing economies. Interventions   […]

Cryptocurrencies don’t make sense

Jon Danielsson. Cryptocurrencies are supposedly a new and superior form of money and investments – the way of the future. The author of this column, however, does not see the point of cryptocurrencies, finding them no better than existing fiat   […]