Andrew Mountford's picture
Affiliation: 
Royal Holloway
Credentials: 
Professor of economics

Voting history

The future role of (un)conventional unconventional monetary policy

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Question 2:  Do you agree that central banks should operationalise the use of these alternative tools of unconventional monetary policy for use either in the near term, or in the future, as economic conditions warrant?

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Answer:
Agree
Confidence level:
Confident

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Question 1: Do you agree that central banks should continue to use the unconventional tools of monetary policy deployed in response to the global financial crisis as part of monetary policy under normal economic conditions?

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Answer:
Agree
Confidence level:
Confident

National Living Wage and the UK economy

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Question 1: Do you agree that the new National Living Wage is likely to lead to significantly lower employment?

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Answer:
Neither agree nor disagree
Confidence level:
Very confident
Comment:
While the literature on the short run effects of increasing the minimum wage is interesting , I think the longer run implications of the National Living Wage policy are more important. The performance of the UK economy will ultimately depend on the productivity of its workforce. As is well known, the market by itself will not provide the optimal level of investment in training in an economy. Individuals and firms need to be given help and incentives to increase their productivity. A low minimum wage combined with a welfare safety net in effect subsidises low skilled/low productivity jobs, i.e. gives precisely the wrong incentives. The new National Living Wage should end, or at least reduce, these perverse incentives. If the National Living Wage causes firms to invest in the productivity of their workforce and workers to invest in themselves then it will have a significantly positive effect on UK economic performance in the longer run.

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Question 2: Do you agree that the new NLW will have a muted effect on wages and prices?

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Answer:
Neither agree nor disagree
Confidence level:
Very confident
Comment:
While the literature on the short run effects of increasing the minimum wage is interesting , I think the longer run implications of the National Living Wage policy are more important. The performance of the UK economy will ultimately depend on the productivity of its workforce. As is well known, the market by itself will not provide the optimal level of investment in training in an economy. Individuals and firms need to be given help and incentives to increase their productivity. A low minimum wage combined with a welfare safety net in effect subsidises low skilled/low productivity jobs, i.e. gives precisely the wrong incentives. The new National Living Wage should end, or at least reduce, these perverse incentives. If the National Living Wage causes firms to invest in the productivity of their workforce and workers to invest in themselves then it will have a significantly positive effect on UK economic performance in the longer run.

Brexit and financial market volatility

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Question 2: Do you agree that the possibility of Brexit significantly increases uncertainty and volatility in financial markets and the economy in general?

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Answer:
Disagree
Confidence level:
Confident
Comment:
This should be the moment of maximum uncertainty. At the last general election even if you consider the Conservatives split 2/3 for Brexit then there were less than 40% of the electorate voting for parties in favour of Brexit. Thus as time progresses I think opinion polls will show a clear majority in favour of the UK remaining in the EU and so the uncertainty surrounding the referendum will subside.

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