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

Voting history

Covid-19: Economic Policy Response

Question 2: Which of the following would have the second greatest impact in mitigating the economic effects of the coronavirus economic crisis in the UK?

Answer:
None of the above, other, or no opinion
Confidence level:
Very confident
Comment:
Need in addition to first choice raising sick pay levels, support for self-employed and raising welfare payments of most kinds.

Question 1: Which of the following would have the greatest impact in mitigating the economic effects of the coronavirus economic crisis?

Answer:
Government credit support for businesses
Confidence level:
Confident
Comment:
As long as it is combined with the state paying most of each firm's wage bill.

The UK Productivity Puzzle

Question 4: Which of the following policies would be your second choice of policy to boost private sector productivity, in addition to or absent your first choice?

Answer:
None of the above, other, or no opinion
Confidence level:
Confident
Comment:
Brexit will reduce UK productivity for well known reasons. The more difficult the government chooses to make it to trade with the EU, the greater the productivity loss.

In the last two questions you are asked which government policies are best suited to help the UK emerge from its productivity growth slowdown. Question 3 asks for your most preferred policy option, while question 4 asks for your second choice. You may use the comment section to outline specific policy recommendations.

Question 3: Which of the following policies would best help improve private sector productivity?

Answer:
Aggregate demand management through fiscal and/or monetary policy
Confidence level:
Confident
Comment:
See earlier comment

Question 1: Which of the following was the most important cause for the slowdown in UK productivity growth?

Answer:
Low demand (including due to the financial crisis, austerity policies, or Brexit)
Confidence level:
Confident
Comment:
Until 2007, the UK largely bucked an international slowdown in productivity growth, partly but not all because of financial services. Since the GFC productivity growth has been below international levels. I have argued that this is associated with two events that greatly increased uncertainty about future demand growth: austerity and the consequent delayed and weak recovery, and Brexit. Without these two events, UK productivity growth would have been closer to international levels.

Pages