Francesca Monti's picture
Affiliation: 
Kings College London

Voting history

Fiscal Rules in the European Monetary Union

Proposition 1: The existing fiscal rules for European Monetary Union members require revision.

Answer:
Agree
Confidence level:
Confident

Question 2: Which of the following is the one reform you would choose to improve fiscal rules?

Answer:
Expansion of EU level fiscal capacity for expanded mutual insurance
Confidence level:
Confident
Comment:
A higher degree of co-ordination of fiscal policy at an EU level would also facilitate convergence and increase the effectiveness of euro-area-wide monetary policy.

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.

 

Answer:
Agree
Confidence level:
Very confident
Comment:
Monetary policy tools are less effective in addressing financial imbalances than macroprudential tools.

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:
Disagree
Confidence level:
Very confident
Comment:
The risk here is mission creep. Adding an explicit reference to house prices or asset prices in the mandate would make the Bank's policies less easy to understand and interpret, so I would avoid it. The Bank should certainly consider also asset prices in their decision making, insofar as they affect their objectives (inflation target, financial stability, etc...)

The “Spend Now, Tax Later” Budget

Question 3: Which of the following best characterizes the pace at which the budget addresses UK’s medium term fiscal challenges (deficit and debt)?

Answer:
Reduces deficits too rapidly
Confidence level:
Not confident
Comment:
The UK has a poor performance in terms of productivity compared to many advanced economies and it is also facing the Brexit shock. These factors could warrant fiscal stimulus for longer than what is implied in the current budget.

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