Sir Christopher Pissarides's picture
Affiliation: 
London School of Economics
Credentials: 
Professor of economics

Voting history

Brexit and financial market volatility

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Question 1: The value of the pound fell sharply this week. Do you agree that the public debate on Brexit can be expected to (continue to) lead to a substantially higher level of exchange rate volatility in the upcoming months?

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Answer:
Strongly Agree
Confidence level:
Extremely confident
Comment:
There will definitely be more volatility as the debate progresses and depending on polls. If polls show the yes camp moving ahead the pound will be getting stronger. The uncertainties relate to the new trade and financial arrangements with he EU in the event of a no vote and to the future of the government (and Cameron-Osborne in particular).

ECB's quantitative easing

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Question 2:

Do you agree that the structure of the ECB's QE programme makes the Eurozone more fragile and increases the risk of one country leaving the euro?

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Answer:
Agree
Confidence level:
Not confident
Comment:
A national central bank might think that outside the euro it would be able to monetise the debt. Its government might think that it can have bigger influence over its central bank. But I voted "not confident" because I think that without QE the risk of a country leaving is even higher: A better planned QE would have reduced the risk by more.

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Question 1:

Do you agree that the design of the ECB's QE programme reduces its effectiveness? 

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Answer:
Agree
Confidence level:
Confident
Comment:
National central banks take on the risk but cannot monetise the debt in the event the government cannot pay and cannot affect interest rates. It's an odd situation that might deter private lenders. Banking union with one central bank should mean exactly that

Deal or no deal: The Greece standoff

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Question 3: Do you agree that implementation of the agreement will lead to an expected decrease in Greek debt repayments?

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Answer:
Disagree
Confidence level:
Confident
Comment:
I believe it should lead to a decrease in debt repayments but I don't think Greece will be offered it on the basis of this agreement. If they sign another medium term (e.g., three year) rescue package they will be given it.

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Question 2: Do you agree that Greece would be better off defaulting right now rather than signing to the agreement under consideration?

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Answer:
Strongly Disagree
Confidence level:
Extremely confident
Comment:
Defaulting right now would lead to some form of dual currency and possibly Grexit. It would spell disaster for the Greek people

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