Jordi Galí's picture
Affiliation: 
CREI, Universitat Pompeu Fabra and Barcelona GSE
Credentials: 
Senior Researcher and Professor

Voting history

Post Covid-19 Potential Output in the Eurozone

Question 2: How much lower will the potential growth rate of GDP in the Eurozone in 2025 be due to Covid-19 relative to pre-Covid forecasts?

 

Answer:
No different
Confidence level:
Not confident
Comment:
I do not see any reason to believe the forces behind innovation and, hence, potential growth, will be much different after the pandemic, one way or another.

The Eurozone COVID-19 Crisis: EU Policy Options

Question 2: What is the best mechanism to pay for economic support provided by and to EU member states to combat the COVID-19 crisis?

Answer:
Monetary finance
Confidence level:
Confident
Comment:
This is the only financing approach that would not imply a rise in members' debt ratios, already too high in many cases. The eventual inflationary consequences would be spread gradually over time, and could be detected early and counteracted if needed.

Labour Markets and Monetary Policy

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Question 2: Do you agree that, in a period of great uncertainty and after a prolonged period of weak real wage growth, monetary policy makers can afford to wait for greater certainty about real wage developments and building inflationary pressure before raising interest rates?

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Answer:
Agree
Confidence level:
Confident
Comment:
But it would be a mistake to wait too long and be forced to increase rates too rapidly.

Bitcoin and the City

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Question 2: Do you agree that the regulatory oversight of cryptocurrencies needs to be increased?

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Answer:
Agree
Confidence level:
Confident
Comment:
In what pertains to their potential use for money-laundering and other criminal activilties. Otherwise they should be treated as any other high risk asset. Prices of goods and services are quoted in "conventional" currencies, and so are interest rates set by central banks or in private financial contracts. That remains key for the effectiveness of monetary policy.

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Question 1: Do you agree that cryptocurrencies are currently a threat to the stability of the financial system, or can be expected to become a threat in the next couple of years?

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Answer:
Neither agree nor disagree
Confidence level:
Confident
Comment:
It depends on the volumes they end up representing relative to the size of the economy and the characteristics (e.g. degree of leverage) of their holders. In their current state they seem largely innocuous for financial stability.

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