CEPR

This column introduces the notion of pessimism in a real business cycle model. The possibility of waves of pessimism generates countercyclical demand from banks for liquid assets, such as bank reserves.

The pursuit of export-led growth through manufacturing has become increasingly difficult in the face of growing global competition. A shift towards service export-led growth offers new opportunities, but it also demands investments in human capital, infrastructure, and institutional capacity.

This column compares the impact of diverse social protection measures across 32 OECD and EU countries on poverty rates and out-of-pocket expenses among older adults with care needs.

Donald Trump’s victory in the recent US presidential election has re-ignited a debate over the macroeconomic effects of tariffs and the appropriate monetary policy response. This column argues that even if there is broad agreement that new tariffs would likely be inflationary for the US, the current situation presents various factors which suggest that it might be optimal for policy to focus more on the inefficient fall in output.

Donald Trump’s re-election as president of the United States on 5 November has stirred both optimism and apprehension in global financial markets. As his administration embarks on a policy agenda heavily focused on tax cuts, trade protectionism, deregulation, and stricter immigration policies – collectively known as Agenda 47 – investors and analysts are evaluating the implications for the economy and equity markets.

Across emerging Europe, regional income disparities remain stubborn, narrowing at just 1% annually. This column examines the effectiveness of Special Economic Zones in addressing these gaps.

This column shows that experiencing disasters actually deepens partisan divisions in climate change attitudes, with significant implications for the public debate and policymaking.

This column argues that deposit relationships could be a solution, thereby contributing to more competitive lending markets. It shows that firms with deposit relationships at competing banks are significantly more likely to switch lenders.

Accelerating the transition to a green economy is a necessity.