Simon Wren-Lewis's picture
Affiliation: 
University of Oxford
Credentials: 
Professor of economics

Voting history

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.

Answer:
Hybrid policies
Confidence level:
Confident
Comment:
Because of the interest rate lower bound, there are good reasons to aim for a price level catch up policy after recessions. There is nothing equivalent after booms, when you want bygones to by bygones. So an asymmetric policy makes sense, where a price level catch up is used after lower bound recessions, but otherwise we have inflation targeting.

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:
Agree
Confidence level:
Very confident

Monetary Policy and Inequality

Question 2: What role should inequality play in the monetary policy decisions (interest rate policy and quantitative easing)?

Answer:
Minimal role
Confidence level:
Confident

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

Answer:
Large
Confidence level:
Confident

Fiscal Rules in the European Monetary Union

Question 2: Which of the following is the one reform you would choose to improve fiscal rules?

Answer:
More flexible, countercyclical, or expenditure-based rules
Confidence level:
Extremely confident
Comment:
National fiscal rules should focus on real exchange rate (price level) harmonisation among EZ countries using national fiscal stimulus or contraction. If this is achieved then national debt will look after itself. If the EZ wants to reduce aggregate government debt, or increase it at the interest rate lower bound, it should be done uniformly across countries.

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