Charts

Takeaway: New mortgage lending drives house prices up by injecting fresh purchasing power into the market, while loan repayments push prices down by destroying money, revealing that bank balance sheets actively steer real estate cycles. Key Points Credit Creation Lifts Prices: A boost in new mortgage originations acts as a temporary injection of fresh purchasing power that creates a lasting upward shift in house prices. Credit Destruction Cools Prices: Paying down mortgage pr

The US Dollar continues to act as one of the worlds major reserve currencies. But will it last? Takeaway: This study investigates how the cost of foreign exchange (FX) financial derivatives influences exporters’ choice of invoicing currency, demonstrating how cheap derivative markets help maintain US dollar dominance and alter how currency fluctuations affect international prices. Key Points Financial Hedging Promotes Foreign Pricing: Companies that use FX derivative contract

A Hot Air Balloon Being Inflated Takeaway This study introduces a framework using LLMs to translate qualitative business commentaries from the Federal Reserve’s "Beige Book" into structured economic data. By feeding firm-level explanations into a macroeconomic model, the authors pinpoint the precise triggers driving historical inflation surges. Key Points Listening over estimating: Qualitative text allows economists to observe why firms say they changed prices, capturing cond

Takeaway: Understanding the complex two-way relationship between gender equality and armed conflict is essential for creating effective humanitarian aid and building lasting economic stability in post-war societies. Key Points Societies with greater legal and social gender equality experience significantly lower rates of armed conflict, though proving direct cause-and-effect remains complex. Violent conflict inflicts severe direct and long-term costs on women—ranging from tar

Revealing salaries can help to reduce pay gaps, but is there a downside? Takeaway: This paper synthesizes international economic research to evaluate how different types of pay transparency laws—peer-to-peer disclosures, managerial pay visibility, and salary ranges in job postings—reshape worker motivation, salary negotiations, and employer hiring strategies. Key Points Peer transparency shrinks wage gaps, but can lower overall pay: Making salaries visible among direct cowork

Takeaway: Providing mobile phone credits to low-income adults during a crisis significantly reduces mental distress and domestic conflicts, particularly when distributed in regular installments rather than a single lump sum. Key Points Reduced Psychological Strain: Free mobile credit lowered mental distress by nearly 10% and reduced the likelihood of severe mental distress by 24% among low-income adults in Ghana during the COVID-19 pandemic. Installments Outperformed Lump Sum

Why top companies pay top wages Takeaway: High-paying firms owe their wage premia to product market dominance and profit-sharing with employees, demonstrating that collective bargaining power can counteract corporate market power to improve economic welfare. Key Points Profit-Sharing Drives Pay: High-wage firms do not just have higher productivity; they charge higher prices and higher markups, sharing a portion of these product market profits with their employees. Product Dom