No. 156, November

Economic inequality across much of the world has increased in recent decades, which is linked to social and economic trends. However, any study of the causes and effects of this phenomenon is hampered by the limited availability of consistent inequality data. A KOF study constructs a measure of inequality based on satellite data. The basic idea is that light intensity reflects economic activity in a geographical unit.

Prices have risen recently in both the United States and Europe. But much of this price increase can be explained by the COVID-19 pandemic and is therefore likely to be only temporary.

In this interview, KOF economist Heiner Mikosch explains the data and algorithms behind the new KOF Nowcasting Lab and how it differs from a classic economic forecast.

Swiss companies’ business situation continued to improve in October and is now almost as encouraging as it was in spring 2018 (see Chart G 7). The worst of the COVID-19 crisis has been overcome. Companies’ expectations about future developments remain optimistic and uncertainty continues to decrease.