It is well understood that real estate lending booms can cause financial crises and weak recoveries (Schularick et al. 2014). Raising house prices that go hand-in-glove with soaring mortgage borrowing should, therefore, be seen as a cause of concern. Taking the UK as a case in point, Figure 1 shows how over the past three […]
The economics of space is no longer the province of science fiction. However, the economics profession has paid little attention to space exploration as a dynamic market. This column argues that economists should turn their attention to the stars, harnessing opportunities that beckon beyond Earth’s limits. A variety of concepts from standard economics can be […]
Some of Donald Trump’s policy proposals could have profound macroeconomic implications, but there is large uncertainty around the (net) economic effects a second Trump term would have. For instance, would the US dollar appreciate due to new tariffs, or would it fall in the face of Trump’s repeated vocal opposition to a strong dollar? And […]
Climate-related risks are now a recognised factor in financial decision-making and therefore in the prices of assets. Two types of climate-related risks are generally recognised: transition risks and physical risks. Transition risks arise because of changes in policies, technologies, and consumer and investor preferences that are already occurring and will need to occur in the […]
