Jorge Braga de Macedo's picture
Affiliation: 
Nova School of Business and Economics, Lisbon
Credentials: 
Emeritus Professor of Economics

Voting history

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:
Expanded EU budget (with possible borrowing at the EU level)
Confidence level:
Confident
Comment:
this option allows for complementarity between the sources of funds while debt restructuring and joint borrowing by member states require variable geometry solutions within the eurozone which could hurt financial stability in the union, exacerbate the depression in economic activity and the rise of unemployment and thereby failing to address health and climate threats together.

Question 1: What is the total size of funding that you would advocate at the EU level in support of its members to weather the COVID-19 crisis this year?

 

 

Answer:
5-10% of GDP
Confidence level:
Confident
Comment:
in spite of the fascination with twelve zeros in the press, it seems impossible to more than double current commitments for this year not only because of differences between debt levels across member states but also because of higher geopolitical tensions which the pandemic has exacerbated so far. the size of funding should therefore be closer to the lower bound.

Global risks from rising debt and asset prices

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Question 1: Does the world economy face heightened risks arising from an excess of public and private debt and/or inflated asset prices?

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Answer:
Agree
Confidence level:
Very confident
Comment:
Inflated prices of assets – as opposed to goods – represent a risk for the world economy to the extent that they slow down deleveraging but the greater risks come from threats to the international order and the absence of peer pressure that makes multilateral surveillance effective.

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Question 2: Is the loose monetary policy of major central banks responsible for the recent increase in global leverage or asset values?

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Answer:
Agree
Confidence level:
Confident
Comment:
Loose policy was also crucial to avoid further damage from the crisis in 2008 and international cooperation has been difficult even within the eurozone

Juncker's State of the Union Address

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Question 2: Do you agree that the euro has had more benefits than costs?

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Answer:
Agree
Confidence level:
Confident
Comment:
Benefits include ability to carry out better policies

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