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.
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.
Loose policy was also crucial to avoid further damage from the crisis in 2008 and international cooperation has been difficult even within the eurozone
The CFM surveys informs the public about the views held by prominent economists based in Europe on important macroeconomic and public policy questions. Some surveys focus specifically on the UK economy (as the CFM is a UK research centre), but surveys can in principle focus on any macroeconomic question for any region. The surveys shed light on the extent to which there is agreement or disagreement among these experts. An important motivation for the survey is to give a more comprehensive overview of the beliefs held by economists and in particular to include the views of those economists whose opinions are not frequently heard in public debates.
Questions mainly focus on macroeconomic and public policy topics. Although there are some questions that focus specifically on the UK economy, the setup of the survey is much broader and considers questions related to other countries/regions and also considers questions not tied to a specific economy.
The surveys are done in collaboration with the Centre for Economic Policy Research (CEPR).
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?
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?
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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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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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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