Fabrizio Coricelli's picture
Affiliation: 
Paris School of Economics
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:
Expanded EU budget (with possible borrowing at the EU level)
Confidence level:
Very confident
Comment:
Expanded EU budget WITH borrowing at the EU level. This will help tackling the current crisis but also fixing the original sin of the euro (single money with no central budget). However, highly indebted countries may still be exposed to self-fulfilling crises on their existing stock of debt (Italy in primis). ECB could commit to ensure during the emergency and recovery period (say 5 years) a maximum interest rate on all bonds of eurozone countries. Spreads would not increase and weakest countries may be put on a path of sustainable debt and would thus have the possibility to exit their current economic depression.

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:
10-20% of GDP
Confidence level:
Extremely confident
Comment:
To be effective, funding should cover the budget deficit induced by the pandemic and, in addition, off budget expenditure linked to local financial institutions, which are not counted in the budget (contingent liabilities): guarantees, state participation in capital of enterprises in essential sectors.

Labour Markets and Monetary Policy

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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:
Disagree
Confidence level:
Confident
Comment:
Credibility is an issue. Moreover, impact of low rates on financial markets cannot be neglected.

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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

Bitcoin and the City

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Question 2: Do you agree that the regulatory oversight of cryptocurrencies needs to be increased?

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Answer:
Agree
Confidence level:
Extremely confident
Comment:
Both the likely use of bitcoin for recycling revenues from illegal transactions and the risk of manipulation of the market would call for an increased regulatory oversight.

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