Panicos Demetriades's picture
Affiliation: 
University of Leicester
Credentials: 
Professor of financial economics
Former Governor, Central Bank of Cyprus and ECB Governing Council member

Voting history

Wages and economic recoveries

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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:
Disagree
Confidence level:
Confident
Comment:
Neoclassical labour market, partial equilibrium, models where employment and real wages are inversely related are too simplistic and far too narrow. A low wage economy is likely to be a stagnating economy with low productivity, low effort, insufficient incentives for education and training, low aggregate demand, little investment and high unemployment. It's a bad macroeconomic equilibrium with many negative social and political consequences and disenfranchised voters. It's a world where populist politicians rise to power and voters who think it can't get worse vote for crazy policies like Brexit. In other words, a world based on myopic models with disastrous outcomes.

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:
Neither agree nor disagree
Confidence level:
Confident
Comment:
They are already playing a role, by complementing hard data with survey views, at least when it comes to monetary policy. I am not convinced that we need to attach even more weight to them, those who advocate their great use are very obviously conflicted (they have built their careers on them, if not their egos).

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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:
Agree
Confidence level:
Confident
Comment:
They should be taken into account alongside everything else, but should certainly not dominate the thinking of policy makers. They can be a useful "add-on", if used consistently.

A “new” UK industrial strategy ?

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Question 2: Do you agree that the UK needs a new regional policy?

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Answer:
Agree
Confidence level:
Confident
Comment:
Brexit will make this necessary because the less favoured areas in the UK and those that benefited frim EU structural funds will suffer otherwise, which will increase regional economic disparities.

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Question 1: Do you agree that the UK needs a new industrial policy?

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Answer:
Agree
Confidence level:
Confident
Comment:
It needs an industrial strategy that addresses human capital deficiencies, such as skills mismatches in the labour market. The UK is, however, not lacking in strong institutions and strategic collaborations between public and private sectors.

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