Demand in the USA and other industrial nations collapsed dramatically during the financial crisis and yet this did not lead to deflation. The reasons for this have still not been fully explained. A new study examines the extent to which financial shocks have a bearing on the path of inflation.

An oft-repeated assertion is that, in the economic and financial crisis, the interbank market fell victim to market failure, denying solvent credit institutions the ability to obtain funding. A recent analysis of the German interbank market now calls this narrative into question.

World trade suffered a marked decline during the financial and economic crisis which started in 2008, even more so than global economic output. A new study investigates what factors can explain the changes in world trade since 2000.

Covered bonds have a long history as a safe financial instrument and are still today a cornerstone of bank funding in Europe. But what underpins their success and how might new regulatory initiatives influence covered bond markets? A new study provides a theoretical model of covered bonds and identifies potential drawbacks of the instrument.

A substantial number of refugees have arrived in Europe in recent months, many of whom will presumably take up work in the coming years. Under considerably different circumstances, German displaced persons migrated to West Germany following the Second World War and needed to be integrated into the labour market. A new study examines how this integration took place.