Evi Pappa's picture
Affiliation: 
European University institute
Credentials: 
Professor of Economics

Voting history

The Eurozone COVID-19 Crisis: EU Policy Options

Question 2: What is the best mechanism to pay for economic support provided by and to EU member states to combat the COVID-19 crisis?

Answer:
Debt restructuring or write-off
Confidence level:
Confident
Comment:
The institutional weaknesses of the eurozone have been laid bare already twice in the last twenty years. Once with the Sovereign debt crisis and now with the response to the COVID-19 crisis. The proposals on the table do not differ substantially from the ones put forward some years ago during the sovereign crisis. Thus, we need to judge them not only in terms of their substance but also on their feasibility and the willingness of policymakers to adopt them. I believe that Eurobonds and the Recovery Fund are not politically feasible, but whats more is that they will not solve the problem of the periphery countries as they would be enforced under several restrictions on fiscal policy in the periphery and the countries more severely hit by the COVID-19 at this moment need fiscal space. The ECB has the authority, and the capacity to provide financing through its Pandemic Emergency Purchase Programme (PEPP), buying debts of crisis countries disproportionately. For that reason, I view debt restructuring coordinated by the ECB as the most efficient, timely and realistic solution.

Question 1: What is the total size of funding that you would advocate at the EU level in support of its members to weather the COVID-19 crisis this year?

 

 

Answer:
No opinion
Confidence level:
Very confident
Comment:
Given the existing economic and health data is hard to evaluate the costs of the Pandemic crisis. For that reason I cannot evaluate what should be the correct size of funding. Yet, the EMU's original scope was to be a Union of transfers, as a result, the EU should do everything it takes to weather the COVID-19 crisis in those countries that were to some extent, randomly, and more severely affected by the pandemic.

Labour Markets and Monetary Policy

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Question 1: Do you agree that a strong labour market is a good indicator of building inflationary pressure?

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Answer:
Disagree
Confidence level:
Confident

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Question 2: Do you agree that, in a period of great uncertainty and after a prolonged period of weak real wage growth, monetary policy makers can afford to wait for greater certainty about real wage developments and building inflationary pressure before raising interest rates?

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Answer:
Agree
Confidence level:
Confident

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:
Disagree
Confidence level:
Confident
Comment:
The slow down of UK GDP growth would be driven by many factors, I do not think that the UK housing market is a cause but I think its a consequence of those other factors driving the economy growth down.

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