Beyond their effects on growth and foreign trade, the tariff and fiscal policies implemented by Donald Trump since his return to the White House will have an impact on the distribution of income among American households. Tax cuts will certainly increase income, but they will be offset by spending cuts and tariff increases, with a net negative effect on the poorest households.
Christophe Blot
Jan 23, 2026
Who is Nicolas (the meme)? The WID’s distributed accounts provide an answer: in France, 70% of the least wealthy individuals are net beneficiaries of redistribution, which corresponds to a gross income excluding pension contributions of more than €4,200/month/person, or a net income after tax of €2,550 per month (for a single person without children). This income, which balances taxes paid with public benefits and expenditures received, has increased over the last 30 years.
Xavier Timbeau
Jan 15, 2026
We explore different ways of calculating the share of wages in value added. The preferred concept is that of the share of wages adjusted for non-wage compensation through mixed income in value added net of fixed capital consumption in market sectors excluding real estate services. This reveals France’s unique position, where the share of wages is higher and has increased significantly
Nov 28, 2025
The monetary poverty rate, a benchmark indicator defined as the proportion of the population living with a standard of living below 60% of the national median, reached 15.4% in 2023 in metropolitan France, according to the latest figures from INSEE.
Pierre Madec
Nov 26, 2025
This blog explains the Labour Party’s recourse to the IMF in Great Britain in 1976
Xavier Ragot
Sep 8, 2025
This blog discusses the relationship between the political leanings of governments and public debt.
Interest rate synchronization is vital for the effective transmission of common monetary policy in the Eurozone. We study the synchronization of government bond yields, identifying three phases: pre-crisis, crisis, and recovery. Using a novel factor-based method, we show how yield divergence during crises hindered policy transmission. The analysis also provides a financial interpretation via optimal portfolios and flight-to-quality dynamics.
Claudio Barbieri, Mattia Guerini, Mauro Napoletano
Aug 25, 2025
Since his return to the White House, Donald Trump has relentlessly pressured the Federal Reserve Chairman to lower interest rates. He has repeatedly hurled invectives and even insults at Jerome Powell, going so far as to suggest the possibility of attempting to dismiss him.
Jun 17, 2025
Trade wars can have significant macroeconomic consequences. Yet the interaction between trade policies and optimal macroeconomic strategies remains little explored. This post proposes an analysis in the context of various monetary policy rules.
Stéphane Auray, Aurélien Eyquem, Michael Devereux
Jun 3, 2025
According to the Draghi report Europe is falling behind. We propose an analysis from the point of view of individual incomes and their distribution, instead of the usual macro or sectoral approach. For the poorest 50%, Europe is a more attractive model than the United States. France has managed to maintain a fairly egalitarian model (at the cost of high taxation of the richest 1%), while the United States is marked by extreme polarisation. Strong growth in the United States mainly benefits the richest and the very rich, leaving a large part of the population on the sidelines without any trickle-down benefits.
May 21, 2025
The early weeks of Donald Trump’s second term are strongly marked by multiple announcements regarding tariffs. It must be noted that this new trade war is experiencing numerous twists and turns that are not economically neutral.
Apr 28, 2025
At the end of 2024, German production is barely above its pre-COVID level. The grand coalition of CDU/CSU-SPD, formed after the snap elections, plans a massive investment in defense and infrastructure, outside the traditional debt framework. Public investment thus potentially becomes the key to Germany’s economic recovery.
Céline Antonin
Apr 24, 2025
Since the beginning of his second term, D. Trump has continued to make announcements in various directions regarding trade policy. In March 2025, before “Liberation Day”, the trade policy uncertainty index constructed by Caldara et al. (2020) stood at a level 13 times higher than its historical standard deviation.
Raul Sampognaro
Apr 22, 2025
Europe must finance three priorities at the same time: European defense, the climate and digital transition, and the strengthening of European infrastructure and the social model. This is possible and necessary, and it is crucial to emphasize the need to simultaneously address these three priorities.
Luiz Awazu Pereira da Silva
Mar 24, 2025
Worldwide, the proportion of women in STEM fields is increasing, but unevenly. In the United States, for example, women earned 49% of STEM degrees in 2017. However, while they are the majority in biology (62%), their presence drops sharply in quantitative disciplines: 39% in geosciences, 22% in engineering, 42% in mathematics, 19% in computer science, and 40% in physical sciences.
Montserrat Botey
Feb 27, 2025
The beginning of November was marked not only by the outcome of the US presidential elections. On 7 November, the FOMC (Federal Open Market Committee) announced a 0.25 point cut in the Federal Reserve’s target rate
Nov 21, 2024
When the ECB started to reduce policy rates - the first cut dates back to June 2024 -, there were rising concerns that the monetary stance might still weigh down on economic activity, at least in the short-term. But how far had that restrictive monetary stance been? Are the shifts in the interest rates sufficient to assess the monetary policy stance or should we also account for the economic context and also for measures taken by the ECB beyond the policy rate?
Christophe Blot, Jerome Creel
Nov 19, 2024
Over the last three decades, labor productivity increased more rapidly in the U.S. than in Europe. In 2019, hourly productivity in the euro area was 82% of that in the U.S., compared to 98% in 1995
Sébastien Bock, Penelope Gelman
Nov 18, 2024
While green and smart technologies are essential for reducing emissions, their sustainability depends on optimizing their life cycle, particularly in material sourcing, recycling, and waste management. The blog examines their life-cycle impact and highlights the urgent need for sustainable practices at every stage—from extraction to disposal—to ensure they truly contribute to a low-carbon sustainable development.
Jessica Coria
Nov 4, 2024
It would seem that the idea of total or partial freezing of the income tax scale, debated in recent weeks, has been (for the moment) abandoned by the government… With the help of the micro- simulation, we still propose here an evaluation of the budgetary savings that can be expected from such a measure as well as its redistributive impacts.
Oct 1, 2024
The inflation rate in the Eurozone continues to decline. In February, it dropped to 2.6%, more than two percentage points lower than the August. The inflation rate is still above the ECB 2% inflation target despite the monetary policy tightening implemented since Summer 2022.
Christophe Blot, Francesco Saraceno
Mar 18, 2024
