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

Voting history

Deal or no deal: The Greece standoff

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Question 1:  

Do you agree that, on balance, the implementation of the agreement as outlined in media reports will have a non-trivial negative effect on Greek GDP?

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Answer:
Agree
Confidence level:
Confident
Comment:
On the one hand the proposal is to tax businesses so the incentives to invest is negatively affected, and to raise VAT, so the incentive to spend is negatively affected. But on the other hand the uncertainty about Grexit is substantially reduced, and this is positive. I believe the negatives outweigh the positives but I am not super confident about it

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:
Very confident
Comment:
The costs are as I explained in my answer to Q1. The benefits are very small, especially since we have "unconventional" means of achieving the same outcomes as negative interest rates, e.g., QE

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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:
Very confident
Comment:
The system could be very complicated to implement, will confuse many people and will make it easy for many to cheat. There are great advantages to transparency and simplicity in financial systems and changing the monetary system to negative interest rates will make both worse

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:
Disagree
Confidence level:
Not confident
Comment:
In principle and with no time constraints the current practice is better. But if it is humanly impossible to write coherent minutes and reports in the very limited time that elapses between decision and public announcement then so be it - try to do it as fast as possible within the constraints
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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:
Strongly Agree
Confidence level:
Extremely confident
Comment:
The main advantage is that nothing will be "hidden" by the Bank for a few more days, which could lead to more speculation about its content. Admittedly, people will be selective in what they read and take into account but if they ignore important information it will be their problem, not the Bank's

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