October 2022

Post n°288
Published on 10/28/2022

By Barbara Castelleti Font and Véronique Genre

Since 2007, the recurring current account deficits in France have tended to worsen. However, the trade in services balance and the primary income balance, which traditionally show a surplus, have limited or even offset the goods trade deficit, which hit a record high in 2021 due in particular to the energy bill. In 2019 and 2021, France returned to a current account surplus. But the sustainability of this current account surplus is by no means assured.

Chart 1. France: Current account balance (% of GDP) Source: Banque de France and Insee
Post n°287
Published on 10/18/2022

By Lionel Fontagné, Fabio Grieco, Pierre-François Weber

An analysis of the results of the IMF’s recent simulations show that the innovative proposal for a carbon price floor leaves the questions of effort sharing between countries and carbon leakage unresolved. Consequently, further possibilities could be explored, particularly the interplay with a carbon border adjustment as well as the carbon price equivalence of regulatory measures.

Chart 1: Coverage and prices of the main international carbon pricing systems.
Chart 1: Coverage and prices of the main international carbon pricing systems. Source: World Bank. Share of annual global CO2 emissions covered by carbon pricing systems at the regional and national level with the explicit carbon prices per tonne of CO2eq of the main schemes at 1 April 2022. ETS = Emissions Trading System.
Post n°286
Published on 10/14/2022

By Boris Julien-Vauzelle, Camille Jehle, Jean-Baptiste Gossé

In 2021 and the first half of 2022, European start-ups raised record amounts and 68 of them gained the status of “unicorn”. Up to now, this dynamic has relied on the increasing involvement of US and Asian investors, particularly for late-stage funding rounds. This emphasises the need for the European Union (EU) to strengthen its own venture capital industry.

Chart 1: Investor origin by amounts raised by EU27 start-ups (2016-21)
Chart 1: Investor origin by amounts raised by EU27 start-ups (2016-21) Source: Banque de France calculations, based on Crunchbase data (at 31 July 2022). Note: The investors considered here are lead investors whose identity is known (see definition below).
Post n°285
Published on 10/07/2022

By Camille Cornand (Univ Lyon, CNRS, GATE), Paul Hubert

Monetary policy consists in part in managing inflation expectations of different agents. New US evidence on heterogeneous frequency of forecast revisions and disagreement among various categories of agents (households, firms, professional forecasters) suggests that targeting communication to specific groups could be a useful tool for central bankers.

Figure 1 – Distribution of inflation expectations in the US
Figure 1 – Distribution of inflation expectations in the US Source: authors’ computations.