As advanced economies age, firms increasingly rely on younger immigrants for physically demanding, entry-level jobs. This column presents evidence from Korea’s pandemic-era border closure showing
China is undergoing a sharp demographic transition: rapid population ageing, a shrinking labour force, persistently low fertility, and continued urbanisation. Using an overlapping-generations framework, this
The 2024 reform of the EU’s Stability and Growth Pact introduced medium-term expenditure paths as the centrepiece of a new, country-specific surveillance framework. This column
There are concerns that the widespread adoption of central bank digital currencies could drain bank deposits and weaken banks’ ability to lend, but it has
The G20 is approaching a turning point. Established in the aftermath of financial crises as a forum for macroeconomic coordination, it has gradually expanded into
Innovation is widely viewed as the engine of economic growth. But not all innovations play the same role. Economists often distinguish between product innovations, which
The composition of international reserves is in a constant state of flux. This column identifies some surprising recent trends, including the continued diversification away from
A central problem for every firm is to ensure that workers provide effort, especially when that effort is hard to monitor. While financial incentives such
In a cost-of-living shock, households must cope with lower purchasing power while also substituting away from goods whose prices have risen. The distributional consequences of