Costas Milas's picture
Affiliation: 
University of Liverpool
Credentials: 
Professor of Economics

Voting history

ECB Monetary Policy and Catch-up Inflation

Question 2: Which of the following policies is the most desirable to meet the ECBs objective to achieve its mandate of “price stability” as you understand this term.

Answer:
Inflation targeting
Confidence level:
Confident
Comment:
Inflation targeting. Any other policy is arguably (much) more difficult to understand (the "hybrid" one in particular), let alone explain to market participants and the public.

Question 1: To what extent do you agree with the following statement? “The European Central Bank should systematically allow for inflation to exceed its target to compensate for periods of below target inflation.”

Answer:
Disagree
Confidence level:
Confident
Comment:
Since March 2013, inflation has (with a few exceptions) being (well) below the 2% target. This idea of compensation is rather questionable. Recently, for instance, inflation reached -0.3%, that is, 2.3 percentage points below the target. Will they compensate for this by allowing inflation to hit 4.3%? And how long for?

Monetary Policy and Inequality

Question 2: What role should inequality play in the monetary policy decisions (interest rate policy and quantitative easing)?

Answer:
Minimal role
Confidence level:
Confident
Comment:
The Bank’s main aim is to defend price stability. The Bank of England is not “Bob the Builder” to fix it all. In an earlier CFM survey, quite a few of us suggested that Central Banks should purchase “green bonds” as an environmental-friendly policy. To also provide Central Banks with the task of influencing income inequality might be a big ask.

Question 1: How large is the impact of monetary policy on the joint distribution of income and wealth?

Answer:
Very Small
Confidence level:
Confident

Central Bank Digital Currency for the UK

Question 2: What effect will the introduction of a CBDC have on UK banks?

Answer:
Moderate benefits
Confidence level:
Confident
Comment:
In the medium to long run, I assume banks will adjust to the challenge.

Pages