Jordi Galí's picture
Affiliation: 
CREI, Universitat Pompeu Fabra and Barcelona GSE
Credentials: 
Senior Researcher and Professor

Voting history

Wages and economic recoveries

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Question 2: Do you agree that the different behaviour of UK real wages relative to Eurozone wages during the Great Recession is in large part due to the UK having different labour market policies?

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Answer:
Agree
Confidence level:
Confident
Comment:
Yes, but largely because it was accompanied with a taylor-made monetary policy and a milder fiscal consolidation.

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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:
Neither agree nor disagree
Confidence level:
Confident
Comment:
The role of wage moderation/wage cuts in promoting recovery cannot be independent of the monetary regime in place. It will be highly effective if the associated drop in inflation is accompanied by a suffiently expansionary monetary policy. At the zero lower bound or within a currency union this may not happen. This is a point that Tommaso Monacelli and myself made formally in a recent paper in the American Economic Review. Reference: Galí, Jordi and Tommaso Monacelli (2016): Understanding the Gains from Wage Flexibility: The Exchange Rate Connection, American Economic Review, 106 (12), 3829-3868

Happiness and well-being as objectives of macro policy

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Question 2: Do you agree that quantitative well-being analysis should play an important role in guiding policy makers in determining macroeconomic policies?

 
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Answer:
Agree
Confidence level:
Not confident

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Question 1: Do you agree that subjective well-being measures, or at least some of the subindices from the typical survey measures, are now reliable enough to give useful insights when used in macroeconomic empirical analysis?

 
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Answer:
Neither agree nor disagree
Confidence level:
Confident

The Future of Central Bank Independence

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Question 3: More generally, do you agree that it is desirable to maintain central bank independence? Again focus on the near future, say next 48 months.

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Answer:
Agree
Confidence level:
Very confident
Comment:
Central bank independence, combined with a high level of transparency and accountability, is in my view the best arrangement for advanced economies. Appointments of Governors/Presidents are still too partisan in many countries. Parliamentary hearings, possibly with the participation of external experts, and a significant multipartisan support for a candidate, would be highly welcome.in my view.

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