Climate policies could affect financial stability if they lead to large changes in asset returns. Matthias Kaldorf and Matthias Rottner study the financial stability and welfare effects of such ‘climate Minsky moments’
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Remaining competitive is fundamental for Europe’s future. Christine Lagarde and Ursula von der Leyen argue that Europe needs faster economic growth and higher productivity to protect the quality of life for Europeans
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The European Commission’s response to the Draghi Report is the Competitiveness Compass. Jeromin Zettelmeyer believes this would set up a conflict between industrial policy and the single market
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Heather Grabbe and Jeromin Zettelmeyer evaluate the capacity of the EU’s economic strategy to address structural problems and whether policy needs to change under Trump
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In many countries, demand for long-term care services outpaces supply, leading to a ‘care gap’. Svend Hougaard Jensen, David Pinkus and Nina Ruer argue that Europe must get ready for the coming long-term care surge
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Europe faces a large climate investment gap. Irene Monasterolo, Antonia Pacelli, Marco Pagano and Carmine Russo propose filling this gap through the joint issuance of European climate bonds that would be funded by selling GHG emission allowances via the ETS extended to all sectors
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Geopolitical risk and cyber-attacks are the most frequently cited risks among leaders of financial institutions operating in the UK. Carolyn Wilkins sets out how geopolitical threats present risks to financial stability
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Donald Trump has promised a raft of new tariffs, prompting concerns about a concomitant increase in inflation. Diego Comin and Robert Johnson argue that tariffs do not necessarily raise inflation, which is a macroeconomic phenomenon
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The world is facing an alarming rise in geopolitical tensions and conflicts. Fabio Panetta considers current trade and geopolitical tensions and reflects on the link between peace and prosperity
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The EU has signalled its readiness to engage and negotiate with Donald Trump. Ursula von der Leyen warns of a race to the bottom and the need to avoid a trade conflict that would hurt both sides and the global economy
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