Michael McMahon's picture
Affiliation: 
University of Oxford
Credentials: 
Professor of Economics

Voting history

The ECB’s Green Agenda

Question 2: Would you support changing the ECB’s mandate to incorporate the EU’s target of carbon neutrality by 2050, if such a change is deemed legally necessary to adopt your preferred approach?

Answer:
Yes
Confidence level:
Confident
Comment:
There is a need to make many reforms to the EU treaties to bring macro-policymaking more fit for purpose in a changed economic environment; ECB mandate adjustments could and should form part of those adjustments.

 Question 1: Which of the following actions is the most advisable approach for European Central Bank to address the environmental impact of its bond-purchasing policies?

Answer:
Banning bond purchases from industries with no clear plan to get to zero emissions by 2050
Confidence level:
Confident
Comment:
I think there is an argument for starting with a move to a greener balance sheet position. An initial move to market neutrality, even if that initial move is gradually achieved, would be a fine starting point but ultimately it is likely something further should be done (even if it is not a major impact on QE or monetary transmission).

Lockdowns and UK Economic Performance

Question 3: Using not only the policy tools that have been part of the UK policy mix thus far but also policy tools implemented in other countries, to what extent does the government face a tradeoff between saving lives and preserving livelihoods? 

Answer:
No tradeoff at all
Confidence level:
Confident
Comment:
I would even think that the two are complementary; to save the economy, action will need to be taken to suppress the virus and save lives.

Question 2: How much will the new lockdown measures introduced on Thursday November 5 hurt UK economic activity this year relative to a counterfactual with the milder measures adopted over the summer?

Answer:
The economy will benefit from lockdown
Confidence level:
Very confident

Question 1: How much of the decline in GDP experienced to date would have been avoided in the absence of any lockdown measures or other policy interventions (such as fiscal support)?

Answer:
A small portion of the decline
Confidence level:
Very confident
Comment:
The timing and precise distribution across sectors may have been different.

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