Question 1: How large is the impact of monetary policy on the joint distribution of income and wealth?
Answer:
Large
Confidence level:
Confident
Comment:
Good monetary policy which managers cycles well will support less inequality stemming from hysteresis. Poor monetary policy would have the opposite effect.
The persistent decline in long-term real interes rates may well be due to other factors and only somewhat to active monetary policy = some aspects of the weather monetary policy cannot change.
Question 2: What role should inequality play in the monetary policy decisions (interest rate policy and quantitative easing)?
Proposition 2: Asset prices and financial imbalances are best addressed using macroprudential tools and left out of the monetary policy decision making process.
Answer:
Strongly disagree
Confidence level:
Extremely confident
Comment:
Macroprudential are best for addressing directly - but to ignore financial imbalances and their potential long-run effects when setting monetary policy would be to repeat the error of the mid-2000s.
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).
Post-Covid Fiscal Rules for the UK
Question 2: What impact has the sequence of fiscal rules adopted in the UK since 1997 had on the conduct of fiscal policy in the UK?
Question 1: What impact has the sequence of fiscal rules adopted in the UK since 1997 had on the level of UK public debt?
Monetary Policy and Inequality
Question 1: How large is the impact of monetary policy on the joint distribution of income and wealth?
Question 2: What role should inequality play in the monetary policy decisions (interest rate policy and quantitative easing)?
Asset Prices and Monetary Policy
Proposition 2: Asset prices and financial imbalances are best addressed using macroprudential tools and left out of the monetary policy decision making process.
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