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

Voting history

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:
Strongly agree
Confidence level:
Very confident
Comment:
Restricting the time frame to 48 months doesn't make a lot of sense - these choices are institutional and hence long-run in nature. From a longer-run perspective, independence still seems beneficial.

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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:
Not confident
Comment:
The difference is unlikely to be small, given that the central banks have shown limited ability to affect inflation in the current low-interest rate regime. If the economies exit this regime within the given time frame I would be more inclined to agree.

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Question 1: Do you agree that central bank independence in the Eurozone and the UK will decline over the next 48 months?

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Answer:
Disagree
Confidence level:
Not confident
Comment:
politics is very difficult to predict over the next year or so but I don't think central bank independence will decline so soon

German Council of Economic Experts' view of ECB policy

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Question 2: Do you agree that the ECB's monetary policy masks structural problems of member states?

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Answer:
Agree
Confidence level:
Confident
Comment:
This does not make the policy a bad policy, but it is a side effect. Separate monitoring and policy is needed to address these structural problems.

German current account surpluses

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Question 2: Do you agree that the German government should increase public spending given its persistently large current account surplus and given that it is part of the Eurozone?

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Answer:
Disagree
Confidence level:
Confident
Comment:
See the arguments above.

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