“We may have been technologically naïve and surprised by the new world the digital revolution ushered in and, as a result, lulled into giving the digital companies free rein. But we have no such excuse this time.” Tom Wheeler examines the regulatory landscape as the AI-powered metaverse develops and argues that past policy mistakes cannot be repeated.

In new research, Mathias Drehmann, Mikael Juselius, and Anton Korinek investigate how rising debt-to-income ratios and higher interest rates systematically depress economic activity for years in the future. They argue that rising household debt service burdens should be a significant concern for policymakers and financial industry decisionmakers—especially considering recent global economic challenges.