Ricardo Reis's picture
Affiliation: 
London School of Economics
Credentials: 
AW Phillips Professor of Economics

Voting history

Monetary Policy and Inequality

Question 1: How large is the impact of monetary policy on the joint distribution of income and wealth?

Answer:
Large
Confidence level:
Very confident

Central Bank Digital Currency for the UK

Question 2: What effect will the introduction of a CBDC have on UK banks?

Answer:
No or little effect
Confidence level:
Very confident
Comment:
Banks in the last few years have already suffered great competition from fin-techs in the operation of payments. The counterfactual of no CBDC is not the status quo of ten years ago. Also, as the BIS excellent research output in this area has shown, the ultimate impact depends on which type of CBDC comes to life, and in some of them banks benefit greatly.

Question 1: How beneficial would it be to the UK economy for the Bank of England to introduce a central bank digital currency in some form in the upcoming decade?

 

Answer:
Beneficial
Confidence level:
Very confident
Comment:
Given current state of knowledge, pros outweigh the cons. But we are still learning about it.

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.

 

Answer:
Disagree
Confidence level:
Very confident
Comment:
They should not be left our to the monetary policy decision process, even if macrprudential tools are the first line of defense.

Proposition 1: The Bank of England’s mandate should be officially modified to take housing or other asset prices into account in its monetary policy decisions.

Answer:
Disagree
Confidence level:
Very confident
Comment:
The Bank can (or not) respond to asset prices more (or less) than it does right now, without needing to change the remit, as recently re-stated: https://www.bankofengland.co.uk/-/media/boe/files/letter/2021/march/2021-mpc-remit-letter.pdf If a change were to occur, it might be better stated in terms of an alternative price index to the CPI (for instance, a dynamic version that takes into account intertemporal substitution would put a larger weight on asset prices: https://personal.lse.ac.uk/reisr/papers/99-dpi.pdf )

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