Classification of Supply Shocks and Their Impact on Inflation
The paper provides a framework to understand how supply shocks affect inflation, identifying eight types of shocks, six transmission channels and seven amplification mechanisms. Some supply shocks and economic characteristics are more prone to generating inflation, and amplification can be significant with multiple mechanisms involved.
Sudan: The Unrelenting Catastrophe
In Sudan, the worst humanitarian crisis with over 150,000 dead, millions displaced and famine. The conflict, started in 2019 with protests against the dictatorship of Omar al-Bashir, escalated into a civil war between the Armed Forces and the Rapid Support Forces. The situation worsens with atrocities in Darfur and the lack of global response.
Fifty years since Spain’s withdrawal from Western Sahara: Between principles and national interest
Between principles and national interest: half a century after Spain’s withdrawal from Western Sahara, sympathy for Sahrawi self-determination stands out, but Spain manages diplomatic balances, prioritizing relations with Morocco and internationally, to protect its territorial integrity and regional stability, acknowledging its limited capacity for influence in the conflict with Morocco.
9 months in the Trump administration: Uneven progress in appointing top officials.
At 300 days into the Trump administration, the Republican Senate has confirmed 216 of the 700 nominees of the president. There is a record of 53 withdrawals of nominations and diversity in gender and ethnic leadership positions is low.
How to Stabilize Public Debt in Advanced Economies?
Public debt levels in advanced economies have decreased since the pandemic but remain high. Deficits in 2024 were elevated in most countries and fiscal effort will be required to stabilise debt. In the EU, public debt is projected to increase in the medium term, and although the primary balances required to stabilise debt are feasible, deficit cuts are significant in several countries. Adjustments are complicated due to spending pressures, population ageing and political resistance. Some countries in need of adjustment may be vulnerable to market sentiment changes.