International

Global inequality—both between countries and within them—has been shaped by a complex mix of economic, technological, political and environmental forces over the past four decades. Some trends reduced differences across countries, notably rapid growth in China and parts of Asia; others sharply widened income and wealth gaps inside most advanced and many emerging economies. Understanding the drivers helps explain why wealth and income cluster in the hands of a few while large populations remain vulnerable.Core economic driversStrong returns on capital relative to overall expansion The dynamic underscored by Thomas Piketty—showing that capital yields can outstrip economic growth—remains pivotal. When returns…

Inflation does not arise solely from internal demand or wage-driven forces. Open economies consistently take in price pressures generated abroad. Imported inflation emerges when rising costs of foreign goods and services, or changes in exchange rates and global supply dynamics, pass through into local prices. Grasping these mechanisms, circumstances, and policy consequences enables businesses, policymakers, and households to navigate risks and respond with greater effectiveness.Main channels of imported inflationExchange rate pass-through: When the domestic currency weakens, the local price of imported goods rises. Retailers, producers, and service providers sourcing inputs from abroad often pass higher import costs to consumers, raising…

The public discourse equates energy storage with lithium-ion batteries, and for good reason: batteries have enabled rapid advances in grid flexibility, electric vehicles, and distributed energy systems. Yet a comprehensive energy transition requires a broad portfolio of storage technologies. Different storage forms deliver varied durations, scales, costs, environmental footprints, and grid services. Treating storage as a single-technology problem risks technical mismatches, economic inefficiencies, and missed opportunities for resilience.What “storage” must deliverEnergy storage serves more than one purpose. Systems are evaluated based on:Duration: spanning milliseconds to seconds for frequency regulation, minutes to hours for peak shifting, and days up to entire…

Insufficient or patchy environmental information poses a widespread obstacle for governments, regulators, and companies seeking to uphold climate obligations. Such weak data may arise from limited monitoring networks, uneven self-reporting practices, outdated emissions records, or political and technical hurdles that restrict access. Even with these constraints, regulators and verification organizations rely on a combination of remote sensing, statistical estimation, proxy metrics, focused audits, conservative accounting methods, and institutional safeguards to evaluate and enforce adherence to climate commitments.Types of data weakness and why they matterWeakness in climate data arises in several ways:Spatial gaps: few monitoring stations or limited geographic coverage, common…

Global interest rates set by major central banks and reflected in international bond yields shape the cost of money worldwide. That transmission matters for everyday prices—mortgages, rents, food, energy, and consumer credit—even when domestic central banks set local policy. This article explains the transmission channels, gives concrete examples and numbers, and outlines how households, firms, and policymakers experience and respond to global rate changes.Primary routes of transmissionGlobal interest rates help shape local living expenses through a range of interconnected pathways:Exchange rates and import prices: When global interest rates climb, especially in major reserve currencies, capital tends to flow toward those…

Global supply chains are larger and more connected than ever, yet they regularly feel brittle. Disruptions that once would have been localized now ripple across continents. That fragility is not just a series of bad events; it is the product of structural choices, changing risk landscapes, and incentives that prioritize cost efficiency over redundancy. Understanding why requires looking at concrete disruptions, systemic drivers, and the realistic trade-offs firms and governments face when trying to harden supply lines.High-profile shocks that exposed weak linksCOVID-19 pandemic: Factory closures, workforce shortages, and volatile demand between 2020 and 2022 led to widespread scarcities in medical…

Accurate tracking of emissions forms the backbone of sound climate policy, corporate climate planning, and informed investor choices. When emissions are misreported, overlooked, or counted more than once, the issue goes far beyond a technical mistake: it distorts incentives, slows mitigation efforts, misallocates financial resources, and weakens public confidence. Below I describe why flawed accounting has such consequences, provide specific examples and data, and propose workable solutions.The role that robust emissions accounting is meant to fulfillGood accounting should consistently capture greenhouse gas (GHG) sources and sinks, assign roles across stakeholders and actions, monitor advancement toward established goals, and support claims…

Debt is a powerful fiscal constraint. When countries, institutions, or households carry heavy debt burdens, their ability to mobilize resources quickly and effectively to respond to pandemics, climate disasters, refugee flows, or financial shocks is sharply reduced. Debt operates through multiple channels — reducing fiscal space, raising borrowing costs, forcing austerity through conditionality, and creating coordination failures among creditors — and these effects compound during crises, turning local distress into prolonged global vulnerability.How debt constrains crisis response: the mechanismsLoss of fiscal space: Heavy debt service commitments, including interest and principal, siphon government income away from urgent health needs, social programs,…

Artificial intelligence has moved far beyond a specialized technical niche, becoming a central strategic force that reshapes economic influence, national defense, corporate competitiveness, and societal trajectories. Entities and countries that command cutting‑edge models, immense datasets, and concentrated computing power acquire disproportionate sway. In the AI age, existing advantages in talent, financial resources, and manufacturing are magnified, while new drivers emerge, including the scale of models, the breadth of data ecosystems, and the stance adopted in regulation.Financial implications and overall market sizeAI is a significant driver of expansion. While methodologies differ, prominent projections suggest that its worldwide economic influence could reach…

Uncertainty—whether from financial crises, pandemics, geopolitical clashes, or sudden technological change—creates pressures that push governments and voters toward protectionist policies. Protectionism surfaces as a response to fear, political incentives, and strategic calculation. This article explains the forces that revive protectionism in bad times, illustrates them with historical and recent cases, examines economic mechanisms and consequences, and outlines policy options that can reduce the temptation to retreat behind trade barriers.Past patterns and more recent examplesProtectionism is far from a recent oddity. The 1930s Smoot-Hawley tariffs stand as a defining illustration: the United States boosted duties in a bid to protect local…