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

Voting history

Post-Covid Fiscal Rules for the UK

Question 3: Which of the following variables should fiscal rules target to best improve the performance of the UK macroeconomic policy going forward.

Answer:
Public deficit
Confidence level:
Confident
Comment:
It makes sense to keep the public deficit-to-GDP ratio "manageable". I wouldn't recommend a particular threshold because there might be circumstances that this threshold might have to be relaxed.

Question 2: What impact has the sequence of fiscal rules adopted in the UK since 1997 had on the conduct of fiscal policy in the UK?

Answer:
Neither improved nor harmed
Confidence level:
Confident

Question 1:  What impact has the sequence of fiscal rules adopted in the UK since 1997 had on the level of UK public debt? 

Answer:
No impact
Confidence level:
Confident

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?

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