Key Highlights
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A new study finds that firms facing higher uncertainty reduce their investment less in response to changes in monetary policy, acting on a “wait-and-see” approach. This means that during uncertain times, central bank actions to stimulate the economy may be less effective, especially for companies with hard-to-reverse investments.
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Research on a new EU tax rule for digital platforms shows it can lower fees for domestic app developers but also raises prices for consumers and shrinks the overall market. This highlights the complex trade-off in digital taxation between supporting local businesses and maintaining a vibrant, competitive online marketplace.
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An analysis of 27 African countries reveals that increasing cereal imports is linked to higher levels of hunger, challenging the idea that more trade automatically improves food security. This finding suggests that policies focusing solely on trade openness may backfire unless they also strengthen local governance and political stability.
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A large survey across 39 African countries shows that poverty is directly linked to receiving lower-quality healthcare in government hospitals, affecting everything from drug supplies to staff respect. This provides strong evidence that fighting poverty and improving public health services must go hand-in-hand to enhance both health and economic well-being.
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