Proposition 2: Asset prices and financial imbalances are best addressed using macroprudential tools and left out of the monetary policy decision making process.
Answer:
Agree
Confidence level:
Very confident
Comment:
Using more unconventional tools can expand the instruments of the central bank. Therefore, it is going to be easy to achieve the target.
Proposition 1: The Bank of England’s mandate should be officially modified to take housing or other asset prices into account in its monetary policy decisions.
Answer:
Neither agree nor disagree
Confidence level:
Very confident
Comment:
From one side, if we increase the number of targets, it is going to be difficult for the central bank to achieve them. On the other side, housing is extremely important for households and demand stabilization. However, the same target can be achieved with some unconventional tools, like macroprudential policies.
The CFM surveys informs the public about the views held by prominent economists based in Europe on important macroeconomic and public policy questions. Some surveys focus specifically on the UK economy (as the CFM is a UK research centre), but surveys can in principle focus on any macroeconomic question for any region. The surveys shed light on the extent to which there is agreement or disagreement among these experts. An important motivation for the survey is to give a more comprehensive overview of the beliefs held by economists and in particular to include the views of those economists whose opinions are not frequently heard in public debates.
Questions mainly focus on macroeconomic and public policy topics. Although there are some questions that focus specifically on the UK economy, the setup of the survey is much broader and considers questions related to other countries/regions and also considers questions not tied to a specific economy.
The surveys are done in collaboration with the Centre for Economic Policy Research (CEPR).
Monetary Policy and Inequality
Question 1: How large is the impact of monetary policy on the joint distribution of income and wealth?
Question 2: What role should inequality play in the monetary policy decisions (interest rate policy and quantitative easing)?
Asset Prices and Monetary Policy
Proposition 2: Asset prices and financial imbalances are best addressed using macroprudential tools and left out of the monetary policy decision making process.
Proposition 1: The Bank of England’s mandate should be officially modified to take housing or other asset prices into account in its monetary policy decisions.
Should We Worry About Post-Covid Inflation?
Question 2: Which of the following will be the greatest inflationary (or deflationary) force facing the UK economy?
Pages