🇫🇷 government bonds serve as collateral in repo markets, where banks and other financial institutions obtain short-term funding using government bonds as collateral. French government bonds account for 10% of collateral in Europe's €13.7 trillion repo market.

🇫🇷 government bonds serve as collateral in repo markets, where banks and other financial institutions obtain short-term funding using government bonds as collateral. French government bonds account for 10% of collateral in Europe's €13.7 trillion repo market.

€zone countries with the most restrictive fiscal policy stance in 2026 (i.e. fiscal consolidation) according to the EU Commission: France, Belgium, Slovakia, Luxembourg, Austria. RRF-financed expenditure contributes to more expansionary stances, but this will end after 2026.

We have a new paper with evidence that fiscal consolidation leads to sizable and persistent declines in public investment in advanced economies; reductions in government consumption are smaller. Real spending on health, education, social protection, environmental protection falls to varying degrees.

We have a new paper with evidence that fiscal consolidation leads to sizable and persistent declines in public investment in advanced economies; reductions in government consumption are smaller. Real spending on health, education, social protection, environmental protection falls to varying degrees.

Experimental evidence suggests AI advice can make people much less accurate yet much more confident: “I don’t know” responses fall from 44% to 3%, accuracy from 27% to 9%, while confidence rises from 30/100 to 76/100.

Experimental evidence suggests AI advice can make people much less accurate yet much more confident: “I don’t know” responses fall from 44% to 3%, accuracy from 27% to 9%, while confidence rises from 30/100 to 76/100.

Very interesting project: Living Science uses an AI agent to reproduce key findings from seminal papers in economics, document what holds up and extend the analysis with newer data. It's like a follow-up paper with robustness checks and extensions. New paper every week.

Very interesting project: Living Science uses an AI agent to reproduce key findings from seminal papers in economics, document what holds up and extend the analysis with newer data. It's like a follow-up paper with robustness checks and extensions. New paper every week.

Military spending in OECD countries has increased strongly. In more than two thirds of all OECD countries, military spending has been rising faster than GDP.

Military spending in OECD countries has increased strongly. In more than two thirds of all OECD countries, military spending has been rising faster than GDP.

Interesting new QJE paper shows inflation gets more attention when people are more exposed to it and when they have past inflation experiences. Those with inflation top of mind follow more inflation news, raise inflation expectations more; firms are more likely to raise prices.

Interesting new QJE paper shows inflation gets more attention when people are more exposed to it and when they have past inflation experiences. Those with inflation top of mind follow more inflation news, raise inflation expectations more; firms are more likely to raise prices.