Accelerating the transition to a green economy is a necessity. This column argues that the green transition will create trade-offs for central banks. Phasing out polluting technologies is likely to temporarily slow down productivity growth, thus creating inflationary pressures. If central banks choose to ‘look through’ and let inflation temporarily rise, inflation expectations may de-anchor. […]
An important question in international macroeconomics is the degree to which advanced economy (AE) investors impact the economic policies of emerging market economy (EME) borrowers. The basic question about how EMEs can manage their economies has been discussed generally through the debate about the Mundell-Fleming ‘policy trilemma’ and its implications for open capital markets in […]
Major geopolitical challenges have led to a significant increase in the use of economic sanctions, and the recent trend extends far beyond the number of cases during the Cold War era (e.g. van Bergeijk 2022, Yotov et al. 2020). 1 The sanctions imposed by Western nations on Russia following its invasion of Ukraine mark another milestone, with […]
