Sushil Wadhwani's picture
Affiliation: 
Wadhwani Asset Management
Credentials: 
Chief executive officer of Wadhwani Asset Management

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:
Agree
Confidence level:
Confident
Comment:
For example, we have had several instances when the Inflation report press conference has been misleading, because the Governor presenting the Report has failed to accurately reflect the weight of opinion on the committee. Having the minutes appearing simultaneously might well help with this problem. Similarly,it is of some advantage for markets to know that a decision is finely balanced(say, a 5-4 vote) versus a unanimous decision at the time of the interest rate announcement, as it provides more complete information in assessing future monetary policy prospects.

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:
Agree
Confidence level:
Confident
Comment:
The reason that peripheral yield spreads are unlikely to rise significantly on a Syriza victory is that markets expect a deal between Syriza and the EU. Of course, if Grexit does occur,this is likely to have significant effects. One should not underestimate the role of "known unknowns" and "unknown unknowns" in any evaluation of the likely risks associated with "Grexit".

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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:
Confident

UK House Prices and Macro-Prudential Policy July 2014

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Question 2: When housing-related risk is deemed excessive from the viewpoint of financial stability, do you agree that the correct response is to deploy macro-prudential tools, leaving interest rates focused on the needs of inflation and aggregate real activity?

 
Answer:
Strongly Disagree
Confidence level:
Extremely confident
Comment:
I think that,in general, using a combination of tools to hit multiple targets is preferable to purely assigning a single instrument to a single target.In this particular case, i believe that the impact of using interest rates AND macroprudential tools on the all-important house price expectations is likely to much greater than just relying on the macro pru tools. Moreover the macr-pru tools we have are new and untested,while we know much more about the efficacy of interest rates.These, and other relevant arguments are discussed in greater detail in my ccontribution tot he LSE "Future of Finance" volume.

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Question 1: Do you agree it is time for more robust policy action to prevent a build-up of excessive housing-related risk?

 

 
Answer:
Strongly Agree
Confidence level:
Very confident

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