Pierpaolo Benigno's picture
Affiliation: 
Università LUISS G. Carli
Credentials: 
Professor of Economics

Voting history

The Future of Central Bank Independence

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Question 3: More generally, do you agree that it is desirable to maintain central bank independence? Again focus on the near future, say next 48 months.

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Answer:
Neither agree nor disagree
Confidence level:
Confident
Comment:
It is however unlikely that the ECB can remain independent since in the next 48-month horizon Europe will have to deal with the Italian sovereign-debt crisis. Ecb stopping debt purchases and raising interest rates can create significant problem to the solvency of Italian government, unless access to ESM and conditionality are accepted. Independence of the monetary-policy stance can be inconsistent with the aim of preserving the integrity of the euro area.

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Question 2: Do you agree that the traditional argument that less central bank independence leads to higher inflation will (still) be relevant over the next 48 months in Western economies?

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Answer:
Disagree
Confidence level:
Extremely confident

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Question 1: Do you agree that central bank independence in the Eurozone and the UK will decline over the next 48 months?

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Answer:
Agree
Confidence level:
Extremely confident
Comment:
Central bank independence in the Eurozone is jeopardized by having entered in quasi-fiscal actions like the large-scale asset purchases. It is likely that next ECB President will be appointed on the basis of who is more favourable to continue or stop these purchases.

German Council of Economic Experts' view of ECB policy

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Question 2: Do you agree that the ECB's monetary policy masks structural problems of member states?

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Answer:
Strongly agree
Confidence level:
Extremely confident
Comment:
Yes, it tends to postpone structural adjustments at the single country level and also delaying convergence to a more integrated union, since it conveys the mistaken idea that the current situation can survive longer. Since OMT announcement and QE policies, any discussion on Eurobonds has been disappearing as well as other discussions on debt mutualization and so forth

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Question 1: Do you agree that exceptionally loose monetary policy by the European Central Bank is no longer appropriate?

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Answer:
Neither agree nor disagree
Confidence level:
Extremely confident
Comment:
Low interest rate policies are appropriate together with enhanced forward guidance, but QE might be ineffective.

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