Francesca Monti's picture
Affiliation: 
Kings College London

Voting history

Covid-19: Economic Policy Response

Question 3: Which would be the maximal public debt you would be willing to tolerate if used effectively (as in your answers to 1 and 2 above) to support an economic recovery?

Answer:
120% of GDP (e.g. if fiscal support were doubled)
Confidence level:
Not confident
Comment:
There are various examples of G20 countries running these levels of debt. With reasonable growth rates in the future, and assuming that the government could continue to borrow at low rates, a 120% debt-to-GDP ratio could still be sustainable.

Question 2: Which of the following would have the second greatest impact in mitigating the economic effects of the coronavirus economic crisis in the UK?

Answer:
Making unemployment benefits more generous, streamlined, or comprehensive
Confidence level:
Confident
Comment:
The measures should be addressed to help self-employed workers, gig workers and the unemployed, so that they can keep afloat and make good of their financial commitments, even as their revenues dry up.

Question 1: Which of the following would have the greatest impact in mitigating the economic effects of the coronavirus economic crisis?

Answer:
Government transfers to and bailouts of businesses
Confidence level:
Confident
Comment:
The government should step in to address the liquidity shortages that will affect businesses as their revenues drop in the face of this shock. These transfers should be conditional on continuing to pay wages to all employees and contractors.

The UK Productivity Puzzle

Question 4: Which of the following policies would be your second choice of policy to boost private sector productivity, in addition to or absent your first choice?

Answer:
Tax and subsidy policies
Confidence level:
Confident

In the last two questions you are asked which government policies are best suited to help the UK emerge from its productivity growth slowdown. Question 3 asks for your most preferred policy option, while question 4 asks for your second choice. You may use the comment section to outline specific policy recommendations.

Question 3: Which of the following policies would best help improve private sector productivity?

Answer:
Investments in human capital including education and job retraining
Confidence level:
Confident

Pages