Simon Wren-Lewis's picture
Affiliation: 
University of Oxford
Credentials: 
Professor of economics

Voting history

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

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Question 1: Do you agree that the simultaneous release of the policy decision, the enhanced minutes (including the voting record) of the MPC meeting and (in the relevant months) the release of the Inflation Report will facilitate inference on the likely stance of monetary policy?
 
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Answer:
Disagree
Confidence level:
Confident
Comment:
The Warsh Review recommendations made sense. The Bank's response does not, for reasons set out quite clearly in the piece by Eichengreen and Geraats. If the Bank seriously wants to improve its transparency, it should make and publish forecasts of what interest rates will be, as the Fed now does.

Greece’s elections and the future of the Eurozone

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Question 2: Do you agree that refusal of the core EU countries to a renegotiation of the Greek bailout agreements would carry serious risks for the economic well-being of the Eurozone?

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Answer:
Strongly Agree
Confidence level:
Extremely confident
Comment:
It would be a disaster. The Eurozone (and the IMF) made a number of serious mistakes during the 2010-12 crisis. Now is their chance to partly undo those mistakes. A Syriza victory would be the best thing to happen in the Eurozone for some time.

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Question 1: Do you agree that a Syriza victory on 25 January would lead to a significant or sustained escalation in spreads for other peripheral Eurozone countries?

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Answer:
Disagree
Confidence level:
Not confident
Comment:
If the Eurozone takes a mature view, and agrees to negotiate with Greece, the outcome will be beneficial for both Greece and the Eurozone as a whole. There are no necessary implications for other countries. After all, Greece has had the terms of its debt adjusted before and no changes have been made elsewhere. There are two reasons why I am not confident about this view. First, I am not confident that the Eurozone will be mature about this. It may try to play what is a very weak hand (in contrast Greece has a strong hand) and make all kinds of silly threats, which will only do the Eurozone harm. Second, other countries may be encouraged to seek debt relief. They have every right to do so. Now of course that raises risk premiums, but that is all part of the calculation that each government has to make.

2014 Autumn Statement

 

Question 2: Do you agree that the underperformance of tax receipts in recent years, provides a strong case for higher taxes?

Answer:
Disagree
Confidence level:
Confident
Comment:
The economy is still in an unusual situation, with real wages very depressed. I still hope that is temporary.

Question 1: Do you agree that the scale of this planned reduction in total managed expenditure is credible?

Answer:
Disagree
Confidence level:
Very confident
Comment:
But the danger is that Osborne may nevertheless try to achieve it. As a political strategy, sharp cuts in the first 2 or 3 years of an administration, followed by easing off before the election, will have appeared to work if he is still in charge.

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