Roel Beetsma's picture
Affiliation: 
University of Amsterdam
Credentials: 
Professor of Economics

Voting history

Global risks from rising debt and asset prices

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Question 2: Is the loose monetary policy of major central banks responsible for the recent increase in global leverage or asset values?

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Answer:
Agree
Confidence level:
Confident
Comment:
I answered this under 1

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Question 1: Does the world economy face heightened risks arising from an excess of public and private debt and/or inflated asset prices?

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Answer:
Agree
Confidence level:
Confident
Comment:
Asset prices, especially stock prices, are at a historical high relative to earnings. Bond yields extremely low at least for core Eurozone debt. We are starting to depart from the current expansionary monetary policies, which will raise risks for asset prices.

Juncker's State of the Union Address

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Question 2: Do you agree that the euro has had more benefits than costs?

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Answer:
Agree
Confidence level:
Very confident
Comment:
the euro has in particular beneficial effects on trade and financial market integration. Estimates vary, of course, but I believe that overall positive effects are found on account of these two

Wages and economic recoveries

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Question 2: Do you agree that the different behaviour of UK real wages relative to Eurozone wages during the Great Recession is in large part due to the UK having different labour market policies?

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Answer:
Agree
Confidence level:
Confident
Comment:
Cumulative differences in inflation rates probably go a long way explaining the wage gap of the UK relative to other countries. However, it is doubtful that continental European institutions would have allowed for substantial real wage erosion, so it is probably the combination of differences in inflation rates and differences in labour market institutions (more flexibility in the UK) that explain the wage gap differences between the UK and elsewhere.

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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:
Agree
Confidence level:
Confident
Comment:
A priori I would think that wage growth relative to pre-crisis growth is the endogenous result of demand and supply, which may explain the cumulative wage gap for Germany. Wage growth being endogenous one cannot a priori say that it is beneficial for employment. Nevertheless, institutional arrangements may have an impact on how demand versus supply translates into wage growth. More flexible labour markets translate increasing unemployment in lower wage growth and this seems to have happened in the UK, which has done relatively well in terms of unemployment since the start of the crisis.