Giancarlo Corsetti's picture
Affiliation: 
University of Cambridge
Credentials: 
Professor of macroeconomics

Voting history

Secular Stagnation

Question 1: Do you agree- making your own definition of secular stagnation clear if you disagree with that offered here- that it is more likely than not that the advanced Western economies have entered into a period of secular stagnation?

Answer:
Neither agree nor disagree
Confidence level:
Not confident
Comment:
The world has started to experience persistently low long-term real interest rates already many years ago. These rates appear to be quite insensitive to short-run cyclical conditions. At that time leading explanations pointed to a global saving glut. The argument often motivated rethinking monetary and fiscal policy (for instance, a higher inflation target as a way to reduce the likelihood of the zero lower bound). After 2008 we have redefined the problem. Still a verdict would require a deeper understanding of global determinants of 'secular stagnation', including differences in demographic, health, welfare states and social security systems, and stages of industrialization (lacking a better label).

Migration and the UK economy August 2014

Question 2: Do you agree that current government policies with respect to non-EU migration (including policies on students, skilled workers, and family migration) are effective in maximizing the gains to the economy from migration while minimizing any possible negative impact to specific groups?

Answer:
No opinion
Confidence level:
Confident

Question 1: Do you agree that migration to the UK can be expected to be beneficial for the average income of current UK inhabitants in the upcoming decade?

Answer:
Agree
Confidence level:
Not confident
Comment:
The prospects for the next few years will depend on which factors will play a major role in determining migratory flow and factor mobility. On the source countries, regional growth in some areas of Europe and Asia may reduce net migratory pressure. But regional conflicts may provide a counterveiling effects. On the demand side, the UK is attractive as destination because of a dynamic labor market and a relatively inclusive welfare state. For these very reasons, however, one may expect political opposition to remain strong.

UK House Prices and Macro-Prudential Policy July 2014

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Question 2: When housing-related risk is deemed excessive from the viewpoint of financial stability, do you agree that the correct response is to deploy macro-prudential tools, leaving interest rates focused on the needs of inflation and aggregate real activity?

 
Answer:
Agree
Confidence level:
Confident
Comment:
We should recognize by now that the most apparent feature of crises involving financial distress and debt-deleveraging is their length: no large deflation followed by a return to normality; rather, a protracted period of persistently large output gaps. With a protracted slowdown, the transmission of monetary policy may be erratic: the channels through which it operates are not fully understood. The same applies, even more strongly, to the macropru instruments. In this scenario, the separation between conventional monetary policy and other instruments (including unconventional monetary policy and macro pru) is a good guiding principle, but we need to be aware that it will be constantly challenged.

Responsible long-term fiscal policy (pilot survey)

Second question:

To help ensure that advanced country governments pursue responsible fiscal policies, countries should adopt formal rules for limiting structural deficits, which are supported by primary legislation or constitutional reform.

Answer:
Agree
Confidence level:
Very confident

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