Philippe Martin's picture
Affiliation: 
Sciences Po, Paris
Credentials: 
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:
Joint borrowing by member states (e.g. Coronabonds)
Confidence level:
Very confident
Comment:
There is a need for a mix of different instruments: joint borrowing + borrowing at the EU level + ECB backstop + increase in national debts. The only instrument to avoid is debt restructuring. We do not need a financial crisis on top of the Covid 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?

 

 

Answer:
5-10% of GDP
Confidence level:
Confident
Comment:
If the EU is able to provide a bit more than 5% of EZ GDP and this comes on top of the national economic stimulus this would be a huge economic and political sucess and would allow to reduce thhe probability of a prolonged recession

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:
Strongly Agree
Confidence level:
Very confident
Comment:
The uncertainty on the level of output gaps and potential output is very large and recent research has shown that standard measures of potential output responds to monetary shocks. In this type of situation better to err in the direction of waiting observed pressures on wages and prices to tighten.

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Question 1: Do you agree that a strong labour market is a good indicator of building inflationary pressure?

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Answer:
Agree
Confidence level:
Very confident
Comment:
The answer depends how one defines strong labour market. Standard unemployment rates may not be enough to judge the strength of the labor market. Participation rates, non standard jobs, part time jobs... may be as or more important.

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:
Very confident

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