Economics
The unbearable lightness of the krone
Norway's weak currency reflects financial markets’ lack of confidence in the country's economic policy
End of QQE and US rate decline will rein in Japanese yields – study
Japan’s institutional investors likely to stay in foreign bond markets, researchers say
Higher-for-longer inflation remains risk – Bank of Finland chief
Political uncertainty in eurozone dominating discussions in Frankfurt, says Olli Rehn
State-supplied firms in Belgium are less profitable – study
Research by central bank shows financially troubled firms sustained by government orders
IMF warns of slowing disinflation path
Higher interest rates in advanced economies could trigger “harmful spillovers”, chief economist warns
French energy ‘tariff shield’ cut inflation by 2.6% in 2022 – report
Authors say measures helped to boost household purchasing power and corporate margins
Regional disparities wider among EU’s newer members – study
Research shows that the poorer the country, the bigger the gap between its capital and its regions
BoE economists hunt ‘driving forces’ of forecast errors
“Systematic” study of mistakes finds wage growth and expectations could have been modelled better
Full-scale war with Hezbollah is a tail-end event – Bank of Israel deputy
Andrew Abir says central bank has advised government to ensure adequate fiscal space as it expects war to last longer and revises its growth and inflation forecasts
ECB official calls for European AI strategy
Plan required to keep European firms competitive, ECB board member Cipollone says
‘Unprecedented’ immigration boosts US economy – Dallas Fed
Authors say there is reason to believe immigration is net neutral for inflation
US labour markets approaching pre-pandemic state, report finds
Simple rules suggest fed funds rate should be at or below current level, report says
Inflation rebounds in OECD countries
Rising energy costs drive uptick in many economies, but G7 avoids increase
Dollar exchange rate variation affects prices less than euro – Riksbank study
Krona-dollar depreciation often coincides with downturn in demand
‘Selective memory’ helps explain expectation de-anchoring – paper
Authors build model around three “regularities of human recall”
Monetary policy could face ‘tougher tests’ ahead, BIS warns
Soft landing “in sight”, but pricing imbalances, fragile fiscal policy and financial vulnerabilities loom
Canadian rate hikes may have lasting effects – research
Bank of Canada researchers find disposable income could decrease by up to 5% by 2027
US inflation’s last mile ‘could take several years’ – Cleveland Fed
Favourable shocks are necessary to reach 2% quickly, researcher argues
Transitioning to renewables could reduce shock impact – research
Authors say Brazilian economy may serve as a model in the clean energy transition
Monetary policy-makers should track bubbles – Dallas Fed paper
Economists warn of possible ‘explosive bubbles’ and evaporating wealth
Italian service sector needs liberalising, paper finds
Bank of Italy research says making market entry easier boosts productivity for all firms
Simpler models can capture dynamics of Hank framework – NBER paper
Heterogeneity can be “irrelevant” to determining output in some situations, authors find
UK inflation touches BoE’s target
Alignment with goal expected to be short lived but opens door to rate cuts later in year