The A.I. Spending Frenzy Is Propping Up the Real Economy, Too
The trillions of dollars that tech companies are pouring into new data centers are starting to show up in economic growth. For now, at least.
Lisa Cook Defies Trump Bid to Fire Her as Fed Governor
Ms. Cook said that she would not resign from the Board of Governors, hours after President Trump announced he was firing her.
Europe Is Spending Big on Defense. Will That Help Its Ailing Economy?
Leaders in Britain and the European Union are promoting the promise of economic benefits from increased military spending, but there is a trade-off.
Geography versus income: the heterogeneous effects of carbon taxation
The distributive effects of carbon taxation are critical for its political acceptability and depend on both income and geographic factors. Using French administrative data, household surveys, and matched employer-employee records, we document that rural households spend 2.8 times more on fossil fuels than urban households and are employed in firms that emit 2.7 times more greenhouse gases. We incorporate these insights into a spatial heterogeneous-agent model with endogenous migration and wealth accumulation, linking spatial and macroeconomic approaches.
Opening the black box of local projections
Local projections (LPs) are widely used in empirical macroeconomics to estimate impulse responses to policy interventions. Yet, in many ways, they are black boxes. It is often unclear what mechanism or historical episodes drive a particular estimate. We introduce a new decomposition of LP estimates into the sum of contributions of historical events, which is the product, for each time stamp, of a weight and the realization of the response variable. In the least squares case, we show that these weights admit two interpretations. First, they represent purified and standardized shocks.
Economists Warn: Trump’s Intel Move Looks Like Performance, Not Policy
Two economists who have studied Intel warn that Trump’s move to take a stake in the company amounts to flashy optics, incoherent strategy, and a creeping politicization of economic policy.
Intel, once dominant in semiconductors, has flailed amid manufacturing problems, leadership changes, and fierce global competition. And unfortunately, it matters because in a world where chips are the new oil, controlling them means controlling power -- economic, military, and geopolitical.
Trump’s push to fire Fed governor threatens central bank independence − and that isn’t good news for sound economic stewardship (or battling inflation)
The fate of Lisa Cook, who is fighting attempts by President Donald Trump to remove her from the Federal Reserve’s Board of Governors, has huge implications for a keystone of good economic policy: central bank independence.
Millionaires may not be fleeing the UK in droves – but there are reasons these stories persist
Balate.Dorin/ShutterstockNews stories in recent months have claimed that more than 16,500 millionaires are expected to leave the UK in 2025 due to the country’s increasing tax burden.
Central bank communication with non-experts: insights from a randomized field experiment
We would like to thank Philipp Lane, Klaus Adam, Michael Ehrmann, Christophe Kamps, Timo Reinelt, Annalisa Ferrando, Philippine Cour-Thimann, Felix Hammermann, Davide Romelli, Andreas Kapounek, and colleagues from DG Communication for for their valuable feedback on earlier versions of this paper. This paper was presented at the 2025 AEA Conference in San Francisco, and we appreciate the feedback and suggestions received from the participants.
Jim Chanos on Crypto, AI, and Casino Capitalism
The famed short-seller reminds us that technology might advance, but we’re still a pretty predictable bunch of apes.
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