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

Monetary policy and the zero lower bound (ZLB)

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Question 2: Do you agree that the benefits of reforming the monetary system to allow materially negative policy interest rates outweigh the possible costs?

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Answer:
Strongly Disagree
Confidence level:
Extremely confident
Comment:
See my previous comment.

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Question 1: Do you agree that it is feasible for the UK authorities to change the monetary system so that materially negative policy interest rates could be safely implemented? (In answering, you may wish to explain your reasons and define your view of 'material')

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Answer:
Strongly Disagree
Confidence level:
Extremely confident
Comment:
Any proposal to tax holdings of cash is, at best, impractical. Even if it can be implemented, which is very doubtful, it would lead to confusion, inefficiency and currency substitution. It would undermine the foundations upon which modern exchange economies function, namely the existence of a stable and simple to use medium of exchange.

The Importance of Elections for UK Economic Activity

Question 2: Do you agree that the outcome of the general election will have non-trivial consequences for aggregate economic activity (employment and GDP)?

Answer:
No opinion
Confidence level:
Very confident

Question 1: Do you agree that the austerity policies of the coalition government have had a positive effect on aggregate economic activity (employment and GDP) in the UK?

Answer:
Neither agree nor disagree
Confidence level:
Very confident
Comment:
We really don't have a counter-factual, we don't know what GDP and employment would have been had we had less or no austerity. Austerity reduces aggregate demand by more than it's usually assumed, as the value of the fiscal multipliers is larger than has typically been predicted, as has also been recently recognised by the IMF. This could mean that the reduction in GDP it causes is larger than the reduction in the public debt, making debt sustainability more of an issue. Also, excessive austerity can impair long run growth, by eroding the quality of a country's physical infrastructure and human capital. These are long run effects but there's plenty of research, including some of my own published in the Economic Journal in 2000, which shows that the returns to public capital are quite high, once the indict effects on the productivity of private capital are taken into account.

Transparency and the Effectiveness of Monetary Policy following the Warsh Review at the Bank of England

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Question 2: Do you agree that the Bank's proposal to release the policy decision, MPC minutes and (once a quarter) the Inflation Report all at the same time justifies a change in the structure of MPC meetings from two consecutive days to a process in which in the MPC meetings are spread out over seven days?
 
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Answer:
Agree
Confidence level:
Very confident
Comment:
They clearly need more time to check and agree the minutes, if they are to be released at the same time as the policy decision.

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