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

Voting history

Brexit: the potential of a financial catastrophe and long-term consequences for the UK financial sector

====================================================================

Question 1: Do you agree that there would be substantial negative long-term consequences for the UK financial sector if the UK were to leave the EU?

====================================================================

Answer:
Agree
Confidence level:
Confident

The future role of (un)conventional unconventional monetary policy

====================================================================

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?

====================================================================

Answer:
Agree
Confidence level:
Confident
Comment:
Such tools might be useful - but, again, only if fiscal policy is not available.

====================================================================

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?

====================================================================

 

Answer:
Agree
Confidence level:
Confident
Comment:
Yes, QE could be useful and could be held in reserve for the future. But it is only really necessary, at least in most situations, if and when the use of fiscal policy has been ruled out - for example, by the disfunctionality of the political system as in the US, or by political ideology as in the UK and the Eurozone.

National Living Wage and the UK economy

====================================================================

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

====================================================================

Answer:
Strongly agree
Confidence level:
Confident
Comment:
For reasons outlined in answer to previous question, the rise is unlikely to have a large effect, but insofar as it does this is a good thing - reversing a trend towards inequality which has prevailed over several decades - rather than a bad thing, and economists should say that in public.

====================================================================

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

====================================================================

Answer:
Strongly disagree
Confidence level:
Confident
Comment:
The rate of increase is really not that high; there are monopsony-type reasons for thinking that employment will not fall; it concerns only a small proportion of most firms' labour-forces; and because most workers likely to receive the increase are in the non-traded goods and services sector we should expect a change in relative prices (think of it as a kind of Balassa-Samuelson effect) rather than a large change in employment (we all get to pay more for our lattes, and this is a small price for living in a decent less unequal society).

Pages