The latest thinking of European macroeconomists

Wages and economic recoveries

Summary

Low growth of real wages has had a positive impact on European employment rates during the recovery phase of the Great Recession, according to the majority view of the latest Centre for Macroeconomics and CEPR expert survey. Asked about the quite different behaviour of wages in the UK relative to the big Eurozone economies, another strong majority of respondents agrees that the dire performance of UK real wage growth is in large part due to the country’s labour market policies, which provide workers with comparatively weak protection.

The Future of Central Bank Independence

Summary

The December 2016 expert survey of the Centre for Macroeconomics (CFM) and the Centre for Economic Policy Research (CEPR) invited views on whether the era of central bank independence is drawing to a close, particularly in Europe. When asked whether there will be significant changes in the independence of monetary policy in the UK and the Eurozone in the foreseeable future, only 31 of the 70 respondents disagreed with this statement.