Question 2: Do you agree that quantitative well-being analysis should play an important role in guiding policy makers in determining macroeconomic policies?
While I think that empirical analysis, macro or micro, should make greater use of subjective well-being measures, I do not think that they can yet play a role in guiding policy. Macroeconomic policies work well when they have clear objectives, and when we understand their pros and cons clearly. I do not think insights from the quantitative well-being analysis satisfies these criteria yet.
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?
Empirical analysis, macro or micro, can definetly make greater use of subjective well-being measures. If a particular policy is consistently associated with lower levels of subjective well-being measures over time and across different countries, we should ask ourselves why.
The ECB is trying to use monetary policy to influence the economic activity in the whole Euro area, despite significant differences among member states in fiscal policy, labor markets and social policy. Without further coordination and integration of such policies and real economic activity, the effects of monetary policy will be short-lived and can indeed limit the willingness of members states to face reforms. A coordinated effort to push structural reforms in member states might be the only option to make the Euro area more resistant to shocks in the long run, since a push for more integration in fiscal policy, labor markets and social policy does not seem to be on the political agenda at this moment.
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?
I think this will depend critically on the type of public spending. Public spending on investment incentives or infrastructure, for example, can further enhance the productivity advantage of German economy and can very well make the situation worst. The same might also be true for public spending that will enhance the flexibility of the labor market (such as child-related transfers). On the other hand, spending on housing or transfers to retired, cash or in-kind, might have a stronger effect on domestic demand and lower the savings rate.
The CFM surveys informs the public about the views held by prominent economists based in Europe on important macroeconomic and public policy questions. Some surveys focus specifically on the UK economy (as the CFM is a UK research centre), but surveys can in principle focus on any macroeconomic question for any region. The surveys shed light on the extent to which there is agreement or disagreement among these experts. An important motivation for the survey is to give a more comprehensive overview of the beliefs held by economists and in particular to include the views of those economists whose opinions are not frequently heard in public debates.
Questions mainly focus on macroeconomic and public policy topics. Although there are some questions that focus specifically on the UK economy, the setup of the survey is much broader and considers questions related to other countries/regions and also considers questions not tied to a specific economy.
The surveys are done in collaboration with the Centre for Economic Policy Research (CEPR).
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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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?
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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Question 1: Do you agree that exceptionally loose monetary policy by the European Central Bank is no longer appropriate?
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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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