Marcus Buckmann, Galina Potjagailo and Philip Schnattinger Disentangling the sources of high inflation, exceeding inflation targets in the post- pandemic period, has been a priority for monetary policy makers. We use machine learning for this task – a boosted decision tree model that fits non-linear associations between many indicators and inflation. We add economic interpretability … Continue reading Boosted inflation – using machine learning to make sense of non-linear determinants of inflation
Macroeconomics
The popular misunderstanding of money John D Alt A general observation that’s easy to make is how our habitual misunderstanding of Modern Fiat Money divides…
Isabelle Roland, Yukiko Saito and Philip Schnattinger The Bank of England Agenda for Research (BEAR) sets the key areas for new research at the Bank over the coming years. This post is an example of issues considered under the Prudential Architecture Theme which focuses on the evolving regulatory structures and fresh strategic issues for regulators and … Continue reading Forbearance lending as a crisis management tool
Busting the ‘natural rate of unemployment’ myth Lars Syll Sixty years ago Milton Friedman wrote an (in)famous article arguing that (1) the natural rate of…
Can anyone concisely propose a theory of systems change? Wayne McMillan This is an answer by Nate Hagens from a Linkedin question asked by a…
What is Modern Monetary Theory? William Thomson Every idea, concept or school of thought can be boiled down to its basics. This is useful when…
Ambrogio Cesa-Bianchi, Alex Haberis, Federico Di Pace and Brendan Berthold To achieve the Paris Agreement objectives, governments around the world are introducing a range of climate change mitigation policies. Cap-and-trade schemes, such as the EU Emissions Trading System (EU ETS), which set limits on the emissions of greenhouse gases and allow their price to be … Continue reading The heterogenous effects of carbon pricing: macro and micro evidence
Benjamin Crampton, Rupert-Hu Gilman and Rebecca Mari. With climate change set to increase the frequency and intensity of flooding in the UK, it is important to deepen our understanding of the potential microeconomic impacts that may propagate into the macroeconomy. We integrate firm-level corporate records, with Ordnance Survey business-premise address information and publicly available flood … Continue reading Staying afloat: the impact of flooding on UK firms
Sustainability Scientists’ Critique of Neoclassical Economics Mark Diesendorf, Geoff Davies, Thomas Wiedmann, Joachim H. Spangenberg, and Steven Hail Citation: Diesendorf M, Davies G, Wiedmann T,…
Sustainability scientists challenge the dominant economic system Mark Diesendorf It is a rare event whenever scientists directly challenge the theory, political power and cultural embeddedness…