Key Highlights
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A new study finds that firms facing higher uncertainty reduce their investment less in response to changes in interest rates, acting more cautiously. This “wait-and-see” behavior means monetary policy is less effective at stimulating the economy during periods of high business uncertainty.
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Research on Chinese manufacturers shows that where a company buys its imported parts matters for pollution: imports from high-tech countries lead to cleaner production methods, but the overall increase in business scale cancels out the environmental benefit. This reveals a complex trade-off where greener technology doesn’t always lead to less total pollution.
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A new VAT tax rule, which makes online platforms collect tax from foreign digital service sellers, can shift the market in favor of domestic companies but may also shrink the overall market size. The final impact on public welfare depends heavily on how easily new sellers join the platform when it grows.
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