Jagjit Chadha's picture
Affiliation: 
National Institute of Economic and Social Research
Credentials: 
Professor of economics

Voting history

2014 Autumn Statement

Question 1: Do you agree that the scale of this planned reduction in total managed expenditure is credible?

Answer:
Disagree
Confidence level:
Confident
Comment:
Although there was a similar fall in the ratio of total managed government expenditure in the second half of the 1980s it was driven by a fairly sustained economic boom. Highly accommodative interest rates may stoke extra demand but we need significantly higher growth in productivity if we are to get anything like this scale of adjustment in managed government expenditure.

Devolving Income Tax Powers within the UK

Question 1: Do you agree that the economic benefits of devolving full income tax powers to the Scottish Parliament and Welsh Assembly outweigh the possible costs?

Answer:
Disagree
Confidence level:
Confident
Comment:
I am not quite sure how any plans for full devolution will stack up with overall gross spending plans and debt issuance for the UK as planned by HMT. Would there be specific overall spending limits imposed on devolved areas? And if regions raise their own taxes for expenditures, investment or otherwise, the temporal mismatch between receipts and expenditures will surely lead to a case for borrowing, for which limits or rules have not been agreed.

Question 2: Do you agree that that there is a clear economic case for establishing "English votes for English laws" with the same tax and spending powers as the Scottish Parliament?

Answer:
Disagree
Confidence level:
Confident
Comment:
The case for large and dominant member of union "to break away" is not as clear as that for peripheral nations. The impact of England on the rest of the Union is likely to be such that it would seem quite proper to allow the views of representatives from Northern Ireland, Wales and Scotland to continue to have their say. It might be different answer is we split the England into smaller region such as counties and cities, in which some localism and/or regionalism would make more sense.

Secular Stagnation

Question 2: Do you think that current structural and fiscal policies should place a considerably greater emphasis on pushing the natural rate into positive territory?

Answer:
Disagree
Confidence level:
Very confident
Comment:
There is probably always room for more structural reform but it should not target a particular rate of return. Fiscal policy may have some role to play in infrastructure investment but in many countries, with the exception of Germany, there is not much room for manoeuvre.

Question 1: Do you agree- making your own definition of secular stagnation clear if you disagree with that offered here- that it is more likely than not that the advanced Western economies have entered into a period of secular stagnation?

Answer:
Disagree
Confidence level:
Very confident
Comment:
We are still unpicking the impact of an extended economic expansion and the subsequent financial crash. Clearing debt burdens and engineering a new monetary-fiscal-financial policy nexus may have a sustained impact on economic growth but do not a secular stagnation make.

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