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

Voting history

Artificial Intelligence and the Economy

Question 2: What will be the implications of recent developments in AI on unemployment in high income countries over the upcoming decade?

Answer:
Remain unchanged
Confidence level:
Confident
Comment:
AI might induce a change in working hours and habits, not necessarily a change in employed workers and possibly a change in the wage paid and productivity (See Erik Brynjolfsson, Danielle Li & Lindsey R. Raymond, NBER WP 31161).

Question 1: What will be the implications of recent developments in AI on global economic growth, as they mature over the upcoming decade?

Answer:
Remain unchanged
Confidence level:
Not confident

Prospects for Euro Area Inflation in 2023

Question 3:  Under its current policy trajectory, with rates peaking at 3.5%, which of the following is most likely?

Answer:
ECB policy rates will be appropriate in 2023.
Confidence level:
Confident

Euro weakness in 2022

Question 2: Should the ECB respond to movements in the euro-dollar exchange rate of the nature observed in 2022?

Answer:
Other, none of the above, or no response
Confidence level:
Not confident
Comment:
If the ECB sees the depreciation of the euro as another factor affecting inflation through more expensive imports it should intervene even unilaterally. However, such an intervention could weaken exports and if the Chinese markets open up again, that would be detrimental for exports especially for Germany. Moreover with many countries in the Eurozone like Italy and Germany with new governments (political uncertainty) and/or high debt to GDP levels such movement could jeopardise financial stability.

Question 1: What was the main cause for the euro’s decline relative to the US dollar in 2022?

Answer:
Real factors
Confidence level:
Confident
Comment:
I have answered real factors but I believe its a combination of factors with the war in Ukraine and the fact that Germany and other countries have relied heavily on Russian fossil fuel imports and also the more aggressive monetary policy in the US as being being the most important ones.

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