Michael Wickens's picture
Affiliation: 
Cardiff Business School & University of York
Credentials: 
Professor of economics

Voting history

Responsible long-term fiscal policy (pilot survey)

Second question:

To help ensure that advanced country governments pursue responsible fiscal policies, countries should adopt formal rules for limiting structural deficits, which are supported by primary legislation or constitutional reform.

Answer:
Disagree
Confidence level:
Very confident
Comment:
In the euro zone when monetary policy is too loose - eg for a high inflation country - it is necessary to have a tighter fiscal policy than if inflation is close to the euro zone average.

First question:

To help ensure that advanced country governments have sufficient flexibility to respond to future crises, it is important that finance ministries aim for a ratio of public debt to GDP that is substantially less than 60% in normal times.

Answer:
Agree
Confidence level:
Confident
Comment:
The level of the debt-GDP ratio should not be considered on its own. Many countries have survived for years with ratios over 100% - eg Belgium. The real question is whether the fiscal stance can sustain any level without running the risk of a credit downgrade which would raise the cost of borrowing.

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