Likely Legacies of War For Post-Conflict Ukraine

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A new report brings together a broad swathe of evidence from economic research, to shed light on the likely consequences of the conflict in Ukraine. The study by Felipe Valencia Caicedo, Ana Tur-Prats and colleagues revisits three topics that are especially relevant for the current Ukrainian context: The negative long-term impact of bombing campaigns and […]

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The Eurozone’s Target System

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The Bundesbank currently has a claim of 1.3 trillion euros vis-à-vis the rest of the national central banks of the Eurosystem – a situation that continues to cause concern among economic policy-makers in Germany, though not so much elsewhere. A new study by Robert Perotti concludes that the German criticism of the Target system is […]

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High Inflation in the Eurozone

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Bringing inflation down after it has risen sharply but only recently is relatively easy: raise policy interest rates, quickly, and persist until inflation starts coming down and expectations of future inflation are solidly re-anchored. But as Professor Ricardo Reis of the London School of Economics explains in a new research report to be published this […]

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The Impact of Leaving the EU on UK Trade in Goods

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The new trading arrangements between the UK and the EU that came into effect at the start of 2021 have had contrasting effects on UK exports and imports, according to new research by Michael Gasiorek and Nicolo Tamberi. Their study finds that after a sharp drop of around 40% in January 2021, aggregate UK exports […]

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The Legacy of Covid-19 in Education

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The cognitive and socio-emotional development of many children has been seriously impeded by school closures during the pandemic. What’s more, children from disadvantaged backgrounds and those with low initial achievement have been much more severely affected. These are among the conclusions of new research by Katharina Werner and Ludger Woessmann, which surveyed parents in Germany […]

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Nudges and Threats

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Harsh enforcement threats usually work in making people pay their tax arrears. But according to a recent experimental research collaboration between the Swedish tax agency and researchers at Uppsala and Gothenburg universities, milder ‘nudge’ methods – such as including a cover letter with standard reminders and alluding to social norms – can be almost as […]

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Unorthodox Monetary Policy Leads to Rising Inflation and a Depreciating Currency

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When the Central Bank of Turkey began cutting interest rates in the face of rising inflation in the autumn of 2021, it resulted not only in a sharply depreciated lira and skyrocketing inflation, but also to higher longer-term interest rates for government bonds, consumer loans and other market rates. That is the central finding of […]

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The Effects of Natural Resource Revenues on Municipal Finance

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Local authorities typically spend money they receive as natural resource revenues or as transfers from national or supranational institutions. But a new study of two mountainous regions in Switzerland that receive substantial hydropower royalties finds that the municipalities forward most of the income to their citizens by lowering taxes. The research by Patrick Leisibach, Simon […]

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