Sylvester Eijffinger's picture
Affiliation: 
CentER, Tilburg University
Credentials: 
Professor of Financial Economics
President of Tilburg University Society

Voting history

House Prices and the UK economy

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Question 2: Do you agree that a more widespread weakening of the UK housing market will slow UK GDP growth significantly?

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Answer:
Agree
Confidence level:
Very confident
Comment:
The more widespread weakening of the UK housing market will certainly slow UK GPD growth significantly because it is accompanied by the uncertainty about the financial and trade relations with the European continent caused by the Brexit negotiations and the unclear British positions.

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Question 1: Do you agree that the phenomenon of declining house prices will ripple out from the London property market leading more UK regions to experience falling prices?

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Answer:
Agree
Confidence level:
Very confident
Comment:
The declining house prices are accelerated by the perspective of Brexit and will lead to falling house prices in more UK regions, especially those regions that are affected mostly by Brexit.

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:
In the long run the benefits of euro membership exceed the costs but this doesn't have to be the case in the short run. The convergence criteria set in the Treaty of Maastricht are necessary but not sufficient conditions for euro membership. The decision to join shouldn't be an automatic one.

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Question 1; Do you agree that euro membership should be compulsory for all EU member states?

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Answer:
Agree
Confidence level:
Very confident
Comment:
In principle, every EU member state (except Denmark and the UK) should join the eurozone in the long run but euro membership should not be compulsory in the short run. If we want to have some kind of European fiscal unification, then we should restrict euro membership even more. There is a trade-off between the broadness and deepness of EU monetary and fiscal unification.

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:
Strongly agree
Confidence level:
Extremely confident
Comment:
The different behaviour of UK real wages relative to Eurozone wages is indeed in large part due to the UK having different labour makets policies, particularly by its more flexible labour markets. Labour markets in France and Germany are less flexible resulting in more unemployment there. The election of Macron may have big consequences for the flexibility of French labour markets.

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