Rising Costs Push Necessities Out of Reach for Nearly Half of Americans
Inflation has made basic goods hard to afford and attitudes toward inequality have changed, studies from the Pew Research Center showed.
Companies may be held liable when AI harms their clients and customers
When AI messes up on a tax return or in a court filing, it's no laughing matter. DigitalVision Vectors/Getty ImagesArtificial intelligence has moved quickly from a novelty on the job to a common workplace tool. Gallup found that 52% of U.S.
Councils that restrict harmful advertising won’t lose out on profits
Abstract/ShutterstockFor cash-strapped councils, turning away much-needed income by restricting adverts for junk food, fossil fuels or other harmful products might seem like a policy they can ill afford.
But a new report, published by the advocacy alliance Sustain and carried out by our team at the University of Portsmouth, suggests otherwise.
What analysts hear and why it matters for monetary policy
We introduce a novel measure of how European Central Bank (ECB) monetary policy is interpreted by analysts at major investment banks. We construct a “policy interpretation shock” based on the language used in analysts’ reports covering monetary policy decisions by the ECB’s Governing Council (GovC). The main identifying assumption is that changes in the way analysts report on policy communication by the GovC—that is, the change in the policy tone from the preview report to the recap report—reflect unexpected information revealed by the policy event.
The heterogeneous bank lending channel of monetary policy
How does heterogeneity in banks’ interest-rate risk exposure shape monetary policy transmission? We develop a quantitative macroeconomic model of heterogeneous banks to answer this question. We establish an irrelevance result: differences in interest-rate risk exposure between fixed- and variable-rate banking systems matter for transmission only when bank solvency concerns become relevant. Calibrating the model to the euro area, we show that idiosyncratic default risk pushes a substantial share of banks toward the solvency threshold, making heterogeneity quantitatively important.
The heterogeneous bank lending channel of monetary policy
How does heterogeneity in banks’ interest-rate risk exposure shape monetary policy transmission? We develop a quantitative macroeconomic model of heterogeneous banks to answer this question. We establish an irrelevance result: differences in interest-rate risk exposure between fixed- and variable-rate banking systems matter for transmission only when bank solvency concerns become relevant. Calibrating the model to the euro area, we show that idiosyncratic default risk pushes a substantial share of banks toward the solvency threshold, making heterogeneity quantitatively important.
What analysts hear and why it matters for monetary policy
We introduce a novel measure of how European Central Bank (ECB) monetary policy is interpreted by analysts at major investment banks. We construct a “policy interpretation shock” based on the language used in analysts’ reports covering monetary policy decisions by the ECB’s Governing Council (GovC). The main identifying assumption is that changes in the way analysts report on policy communication by the GovC—that is, the change in the policy tone from the preview report to the recap report—reflect unexpected information revealed by the policy event.
Remembering Perry Mehrling
It is with deepest sadness and regret that we learned of the passing of Dr. Perry Mehrling. Dr. Mehrling played a vital role in INET and its Young Scholar Initiative (YSI) for many years. We were looking forward with hopeful anticipation to working with him far into the future. Alas, it was not to be. Over the next few months, INET and YSI will be organizing a series of tributes to Dr. Mehrling. In the meantime, we gratefully reprint with permission the warm and generous appreciation of our long time colleague just published by our friends at the History of Economics Society.
Social Security benefits will rise 3.6% in 2027, but that may not be enough to offset healthcare costs
Increasing Social Security benefits annually helps millions of older Americans afford necessities.
Minutes of the Money Market Committee meeting – September 2026
The Money Markets Committee is a forum for market participants and authorities to discuss the UK unsecured deposits and funding market and securities lending and repo markets.
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