Per Krusell's picture
Affiliation: 
Stockholm University
Credentials: 
Professor of Economics

Voting history

Juncker's State of the Union Address

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

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Answer:
Disagree
Confidence level:
Confident
Comment:
The sovereign debt crisis in Europe would have been made simpler without the euro.

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:
Not confident

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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:
Not confident
Comment:
Early on lower real wage growth probably had limited influence on firm investment - the uncertainty about the future dominated - but later on it was likely beneficial in this sense. Higher real wage growth would likely have stimulated demand a bit early on and could have been beneficial on net, but later on likely less so.

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:
Disagree
Confidence level:
Very confident
Comment:
For the reasons I gave in the response to the previous question, my answer here is that happiness measures should not be used (yet). The fact that "unhappiness following unemployment persists into the next employment spell" can be rationalized using other observables, e.g., wage changes or wealth changes. I do believe that unemployment is a big problem in our societies and can cause depression, suicide, etc. but then I would favor direct measures of these phenomena.

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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:
Disagree
Confidence level:
Very confident
Comment:
I mostly think we should base policy analysis on revealed-preference arguments, which means we should look at observable economic behavior. My view on this can be changed as more research is produced but it is too early to switch to direct survey-based measures.

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