David Cobham's picture
Affiliation: 
Heriot Watt University
Credentials: 
Professor of economics

Voting history

Bitcoin and the City

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Question 2: Do you agree that the regulatory oversight of cryptocurrencies needs to be increased?

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Answer:
Neither agree nor disagree
Confidence level:
Confident

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Question 1: Do you agree that cryptocurrencies are currently a threat to the stability of the financial system, or can be expected to become a threat in the next couple of years?

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Answer:
Disagree
Confidence level:
Confident
Comment:
Not a threat so far, or for a good while yet, though it is conceivable things could change.

House Prices and the UK economy

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Question 2: Do you agree that a more widespread weakening of the UK housing market will slow UK GDP growth significantly?

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Make sure to save each question separately

Answer:
Agree
Confidence level:
Confident
Comment:
I agree with the statement for the short term. But if this weakening was part of a wider rebalancing of the UK economy (which I doubt will occur), then there could be some positive effects on growth in the longer term.

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Question 1: Do you agree that the phenomenon of declining house prices will ripple out from the London property market leading more UK regions to experience falling prices?

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Answer:
Agree
Confidence level:
Confident
Comment:
There are certainly some London-specific factors, but not enough to swamp or to nullify the ripple effect.

Global risks from rising debt and asset prices

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Question 2: Is the loose monetary policy of major central banks responsible for the recent increase in global leverage or asset values?

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Answer:
Agree
Confidence level:
Confident
Comment:
It has clearly played a role – but the question to ask is why monetary policy has had to act in this way, and the answer is obvious: the refusal of governments (notably Schäuble's!) to use fiscal policy in an appropriate manner, which has been based on a range of incorrect arguments for austerity (expansionary fiscal contractions, debt ratio threshold effects on growth, moral hazard poorly understood, etc). If fiscal policy had been used in the right way since 2009 there would have been less pressure on central banks to undertake monetary expansion (and to invent new techniques for it), economic activity would have been stronger and the debt/asset price position would have been healthier.

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