Francesco Lippi's picture
Affiliation: 
LUISS
Credentials: 
Professor of Economics

Voting history

German Council of Economic Experts' view of ECB policy

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Question 1: Do you agree that exceptionally loose monetary policy by the European Central Bank is no longer appropriate?

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Answer:
Disagree
Confidence level:
Confident

German current account surpluses

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Question 2: Do you agree that the German government should increase public spending given its persistently large current account surplus and given that it is part of the Eurozone?

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Answer:
Disagree
Confidence level:
Confident
Comment:
to me the idea is pointless, and if it worked might be bad for the germans who apparently want to save and not vice versa (and why should I tell them to do otherwise?). Moreoevrer, the policy might at best have second order effects by a Ricardian equivalence argument

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Question 1: Do you agree that German current account surpluses are a threat to the Eurozone economy?

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Answer:
Disagree
Confidence level:
Confident
Comment:
I do not see why the savings of my neighbor should be a problem for me. Rather, they are a potential source of financing my investment . I do not know a single reasonable model where CA surpluses are a problem. The fact that one needs to resort to 70 year old theories, where prices and policies are exogenous , is a tell tale of how the the arguments are. But, since politics attaches a bad meaning to such budget surpluses, I do think it will be possible that such surpluses will become a political problem that might eventually threaten the monetary union.

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