International Macroeconomics

Gold is soaring again. Since the 2020s began, its price has surged nearly 100%, outpacing even the S&P 500. But what’s fueling this rise? From runaway inflation to global de-dollarization and shifting geopolitical tides, gold is reclaiming center stage in global finance. Central banks, especially in BRICS nations, are stacking up reserves, hinting at deeper…

Central banks currently strive to keep prices stable, but their tools mostly affect the economy through the financial markets. As long as they are operated by humans, markets will be subject to swings due to emotional forces. This phenomenon, characterised as Animal Spirits by Keynes, complicates the transmission of monetary policy to the broader economy.…

As Europe faces growing economic challenges, Mario Draghi has introduced an ambitious plan to enhance the EU’s global competitiveness. His strategy focuses on fostering innovation, accelerating decarbonization, reducing dependencies on critical resources, and mobilizing €800 billion annually in investments. Central to the plan is strengthening EU governance and streamlining decision-making to ensure the bloc’s resilience…

In an increasingly volatile world, the global trading order is threatened by tariffs, populist rhetoric, and national security concerns. This article analyses some common misconceptions about trade while also providing some analysis of what increasing tariffs and friendshoring production could mean for the global economy.

This piece delves into Italy’s economic challenges, the pivotal role of the EU Recovery Fund, and the implications for regional development and Eurozone integration. It discusses how the fund’s allocation impacts Italy’s struggle with regional disparities, economic stagnation, and the potential for future EU fiscal policies. A must-read for understanding the complexities of Italy’s economic…

In recent decades, modern countries, communities, and families have witnessed decreasing connectedness. Despite efforts to revitalize communities, feelings of disconnection and loneliness are steadily increasing, suggesting that perhaps part of the problem lies undiagnosed. This article argues that something fundamental is indeed being overlooked in the discussion regarding community, and urges reforms in the way…

The recent economic, geopolitical, and social crises have driven uncertainty to new highs. In the realm of economics, this is particularly present, as unforeseen events and policy decisions can have profound and often unpredictable effects on financial markets, consumer behaviour, and economic growth. The Economic Policy Uncertainty Index, developed by Bloom, Baker, and Davis, has…