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

Voting history

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:
Agree
Confidence level:
Confident
Comment:
In what pertains to their potential use for money-laundering and other criminal activilties. Otherwise they should be treated as any other high risk asset. Prices of goods and services are quoted in "conventional" currencies, and so are interest rates set by central banks or in private financial contracts. That remains key for the effectiveness of monetary policy.

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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:
Neither agree nor disagree
Confidence level:
Confident
Comment:
It depends on the volumes they end up representing relative to the size of the economy and the characteristics (e.g. degree of leverage) of their holders. In their current state they seem largely innocuous for financial stability.

Global risks from rising debt and asset prices

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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:
Agree
Confidence level:
Confident
Comment:
It must be true, even if it is only part of the explanation.

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

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