In the spirit of unity, let me start with a statement we can all agree on: the EU needs to grow its capital markets. That statement begs at least two big questions. On these, there is less agreement. Firstly, how should we grow them? And secondly, why haven’t they grown more already? A lot of […]
Geopolitical downside risk to oil production can have sizeable effects on oil price uncertainty and the global economy. This column argues, however, that it is not a major driver of macroeconomic fluctuations because large shifts in such risk are rare. Macroeconomic disaster risk is a more important driver of economic downturns. It also increases oil […]
If you invested one dollar in the post-war years in a diversified portfolio of all publicly traded firms, by 1980 you would have seen a real return of zero. Instead, if you invested one dollar in 1980, today you would have nearly ten dollars. This column argues that the rise of stock market valuations is […]