Is now really a good time to start investing?
Government begins push to create a ‘nation of investors’ as AI bubble fears intensify
London’s private members’ club scene is growing. Just don’t call them clubs
Undeterred by reports of an exodus of the wealthy from the UK, a new breed of institution is opening its doors
Regulators intervene over Euronext’s plans for ETF settlement
Proposal had provoked backlash from Euroclear and industry over potential for higher costs
IFDP Paper: To Cap or Not to Cap? Energy Crises in a Currency Union
Momo KomatsuDuring the energy crisis in 2022 some Euro Area countries introduced price caps on energy, while others did not, leading to about 30 percentage points higher energy inflation in uncapped countries. This paper investigates the trade-offs policymakers face with energy price caps in a two-country currency union model with shared energy supply. The cooperative, optimal outcome is for neither country to impose a price cap, since the cap is a costly market distortion.
IFDP Paper: Decoupling Dollar and Treasury Privilege
Wenxin Du, Ritt Keerati, and Jesse SchregerWe document a strong decoupling between the convenience yield on the US Dollar and US Treasuries. We measure the convenience of the U.S. dollar using covered interest parity (CIP) deviations between risk-free bank rates, such as secured overnight rates since the benchmark reform. In parallel, we measure the convenience of U.S. Treasury bonds through CIP deviations between government bond yields.
Businesses Are Cashing In on Trump’s Tax Cuts
Corporate tax revenue has quickly dipped since Republicans passed tax cuts this summer. But economists think these tax breaks might be worth it.
The quiet rise in the tax burden for UK businesses will hit workers and consumers too
William Barton/ShutterstockMany businesses in the UK saw the 2025 budget as a tightening of the screw in a period of already difficult conditions. While the government insists it is not raising taxes on companies overall, disquiet among businesses could have an impact on jobs, wages and the wider economy.
Cooling Labor Market and Elevated Inflation Stoke Fed Divisions on Rate Cuts
Fed officials explained their opposition to the central bank’s decision this week to cut interest rates by a quarter of a percentage point.
IFDP Paper: Economic Diversity and the Resilience of Cities
François de Soyres, Simon Fuchs, Illenin O. Kondo, and Helene MaghinWe develop a framework to assess how economic shocks affect local labor markets and worker welfare, with a focus on city-level economic diversity. Using detailed worker flow data across cities, sectors, and occupations, we construct theory-consistent welfare measures. Our approach combines a dynamic discrete choice model with a dual representation that captures both direct effects and the insurance value of local economic diversity.
FEDS Paper: Artificial Intelligence Innovation by Financial Innovators: Evidence from US Patents
Jean Xiao TimmermanThis paper examines the evolution of artificial intelligence (AI) patent rates (i.e., the number of AI patents/number of firms of the same type) and concentration metrics (i.e., the Herfindahl-Hirschman Index (HHI) and Gini coefficient) among financial market participants from 2000 to 2020.
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