Question 2: Which of the following policies is the most desirable to meet the ECBs objective to achieve its mandate of “price stability” as you understand this term.
Answer:
Inflation targeting
Confidence level:
Confident
Comment:
If the natural real interest rate were to change persistently in the future, the ECB would need to adjust its inflation target, at the next "strategy review."
Question 1: To what extent do you agree with the following statement? “The European Central Bank should systematically allow for inflation to exceed its target to compensate for periods of below target inflation.”
Answer:
Disagree
Confidence level:
Confident
Comment:
The proposed "catch-up" rule for inflation is too fuzzy, as the rule does not stipulate how long and by how much inflation would be allowed to exceed its target, after a period of low inflation. This lack of clarity would (further) undermine the credibility of the ECB. The ECB needs simple, transparent and credible rules! The ECB is rightly concerned about the persistent decline in the equilibrium interest rate and the resulting increase in the risk of hitting the interest rate effective lower bound. This concern calls for a permanent increase in the target inflation rate to, say, 2.5% or 3%.
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?
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).
ECB Monetary Policy and Catch-up Inflation
Question 2: Which of the following policies is the most desirable to meet the ECBs objective to achieve its mandate of “price stability” as you understand this term.
Question 1: To what extent do you agree with the following statement? “The European Central Bank should systematically allow for inflation to exceed its target to compensate for periods of below target inflation.”
Fiscal Rules in the European Monetary Union
Question 2: Which of the following is the one reform you would choose to improve fiscal rules?
Proposition 1: The existing fiscal rules for European Monetary Union members require revision.
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?
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