Thorsten Beck's picture
Affiliation: 
Cass Business School
Credentials: 
Professor of Banking and Finance

Voting history

Global risks from rising debt and asset prices

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Question 2: Is the loose monetary policy of major central banks responsible for the recent increase in global leverage or asset values?

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Answer:
Agree
Confidence level:
Very confident
Comment:
It is the combination of using loose monetary policy (needed given weak growth) and NOT using macro-prudential tools sufficiently to prevent asset prices from overshooting.

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Question 1: Does the world economy face heightened risks arising from an excess of public and private debt and/or inflated asset prices?

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Answer:
Agree
Confidence level:
Very confident
Comment:
There is is still a sovereign debt overhang in several Eurozone countries. There is increasing concern on UK sovereign and private debt levels given increasing uncertainty on Brexit and thus economic performance. Finally, there seems an increasing private debt accumulation in several emerging markets, which is hard to understand given currency and location of this debt.

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:
Neither agree nor disagree
Confidence level:
Confident
Comment:
The benefits have been unequal across the currency union. I would have answered confidently with yes, if the currency union had been restricted to a set of core countries and/or had been accompanied by convergence in other areas (banking union, fiscal union).

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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:
Strongly disagree
Confidence level:
Extremely confident
Comment:
Business cycles and economic structures across EU countries are too different to justify one currency. The Eurozone crisis has shown that too diverse a group of countries do not make a sustainable currency area - diversity not only in economic structure in cycles but also institutions.