Liquidity is a key measure of how well financial markets are working. It refers to how easily assets can be bought or sold—and when it dries up, it can be disruptive. After more than a decade of abundant liquidity and relative calm in markets, central bank interest-rate increases to contain …

During a parade in Baku in December 2020 marking Azerbaijan’s victory in the Second Karabakh War, Turkish President Recep Tayyip Erdogan recited an Azerbaijani poem that caught the attention of Iran. The poem, titled “Gulustan,” speaks of sadness resulting from the fact that the Aras River divides the ethnically Azerbaijani …

Researchers at the Institute for World Economy IfW Kiel and DIW Berlinhave analysed the economic impact of jointly implementing punitive measures in the context of the 2012 Iran and 2014 Russia sanctions. They find that coalitions serve two crucial purposes—they not only magnify the economic cost imposed on the target …