Evi Pappa's picture
Affiliation: 
European University institute
Credentials: 
Professor of Economics

Voting history

Global risks from rising debt and asset prices

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Question 1: Does the world economy face heightened risks arising from an excess of public and private debt and/or inflated asset prices?

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Answer:
Disagree
Confidence level:
Confident

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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:
Disagree
Confidence level:
Confident

Juncker's State of the Union Address

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Question 1; Do you agree that euro membership should be compulsory for all EU member states?

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Answer:
Disagree
Confidence level:
Very confident
Comment:
The adoption of policies promoting labor market and product market flexibility is a key step in the future of the Euro area. The exchange rate adjustment role in stabilising cyclical fluctuations is limited and short lived. As long as fiscal, labor market and product market adjustments are in place an economy can adjust in asymmetric shocks without the need of adjusting the exchange rate. Yet, the euro membership should be an equilibrium outcome in a well designed and structured EU, not an obligation to its member states.

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Question 2: Do you agree that the euro has had more benefits than costs?

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Answer:
Agree
Confidence level:
Very confident
Comment:
The main argument of the opponents of the euro is that with the adoption of the euro many members have lost competitiveness and monetary policy independence. Yet, it was not the euro per se that lead to losses, but the ineffective use of the extra capital and the surge in public sector jobs and wages. Again, the adoption of policies promoting labor market and product market flexibility is a key step in the future of the Euro area. The euro in fact has reduced inflation, fostered trade, and increased productivity, especially in the European Periphery. Moreover, the euro and the strong commitment it carries, has provided smaller European countries with political stability and has made the European market less vulnerable to noise shocks and political uncertainty at the global level.

Wages and economic recoveries

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Question 1: Do you agree that lower real wage growth was beneficial for employment levels during the Great Recession?

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Answer:
Disagree
Confidence level:
Confident
Comment:
I have some objections about Germany here. A distinctive feature of Germany’s recession experience was that unemployment hardly increased. Also competition-weighted unit labor cost in Germany have been very low even before the recession started and many economists attribute the small increase in unemployment to this factor. In general, wage flexibility per se is a necessary but not a sufficient condition for recovery, labor market flexibility is key.

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