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 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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Question 2: Do you agree that the traditional argument that less central bank independence leads to higher inflation will (still) be relevant over the next 48 months in Western economies?

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Answer:
Disagree
Confidence level:
Confident
Comment:
I think it would be a serious mistake to link the degree of indepence of central banks with the (circumstantial) fact that inflation is currently below target in many advanced economies. A more expansionary fiscal policy, supported by monetary policy, would be a more suitable way to tighten labor markets and capacity and raise inflation where it needs to.

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