Etienne Wasmer's picture
Affiliation: 
Sciences Po, Paris
Credentials: 
Professor of Economics

Voting history

Labour Markets and Monetary Policy

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Question 2: Do you agree that, in a period of great uncertainty and after a prolonged period of weak real wage growth, monetary policy makers can afford to wait for greater certainty about real wage developments and building inflationary pressure before raising interest rates?

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Answer:
Disagree
Confidence level:
Confident
Comment:
Slowly raising interest rates is becoming urgent ; not because of the inflation of commodity ; but because of inflation of financial and real assets such as housing. I would like to see a progressive rise in interest rates in order to reduce at a slow pace the price of these inflated assets.

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Question 1: Do you agree that a strong labour market is a good indicator of building inflationary pressure?

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Answer:
Disagree
Confidence level:
Very confident
Comment:
It seems that changes in unemployment in a country tell is very little on the reserve/shortage of labor available to firms in this country: there are large participation margins and many countries in the world who can supply labor. If local wages are too high, it is now very easy to subcontract some of the activities to other countries.

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:
Strongly agree
Confidence level:
Extremely confident
Comment:
Oversight is one thing, coordination is another (and more difficult) matter.

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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:
Strongly agree
Confidence level:
Confident
Comment:
Hard to tell, this is radical uncertainty, nothing close in history as far as I can tell. The main new risk comes from the fact that most people don't understand the supply and the encryption process. Once, when I was a graduate student, someone told me: nobody understands monetary theory, but some understand a bit better. The same is true power 3 in crypto currencies.

A “new” UK industrial strategy ?

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Question 2: Do you agree that the UK needs a new regional policy?

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Answer:
Agree
Confidence level:
Very confident

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