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

Voting history

German Council of Economic Experts' view of ECB policy

====================================================================

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

====================================================================

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

====================================================================

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?

====================================================================

 

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

====================================================================

Question 1: Do you agree that German current account surpluses are a threat to the Eurozone economy?

====================================================================

Answer:
Disagree
Confidence level:
Confident
Comment:
I am more concerned with medium- to longer run economic performance and from this perspective German spending should be based on cost-benefit analysis. Moreover, the public spending considered unlikely has much effect abroad, especially in the periphery; it is unlikely to have strong demand effects. Stronger demand is also unlikely to be sufficient for turning the periphery around (because of structural problems - which should be addressed first). I would be more positively inclined toward direct transfers to the periphery conditional on the money going to support the unemployed (or in other ways helping those in need) during a structural transition. Germany is not to blame for structural problems in the economies in the periphery and I think much of the arguments in this debate rest on ethics of this sort. Germany is to blame for their early runup in debt (sending the signal that high debt is "ok") but that is only vaguely related to the present issue.

Pages