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

Voting history

Global risks from rising debt and asset prices

======================================================================

Question 2: Is the loose monetary policy of major central banks responsible for the recent increase in global leverage or asset values?

======================================================================

Answer:
Neither agree nor disagree
Confidence level:
Confident
Comment:
Asset values yes - that was the inevitable consequence of QE. It may have also encouraged additional leverage, but responsibility for leverage lies with macroprudential policy. The moment that we make interest rate/QE policy responsible for financial stability as well as inflation is the moment the consensus around assigning macro stabilisation to monetary rather than fiscal policy ends.

======================================================================

Question 1: Does the world economy face heightened risks arising from an excess of public and private debt and/or inflated asset prices?

======================================================================

Answer:
Disagree
Confidence level:
Not confident

Juncker's State of the Union Address

====================================================================

Question 2: Do you agree that the euro has had more benefits than costs?

====================================================================

Answer:
Strongly disagree
Confidence level:
Very confident
Comment:
Excess inflation in the periphery and German cost undercutting were both a result of the Euro, and both have had serious consequences. The SGP and fiscal compact that are part of the Euro architecture have destabilised the whole Union (apart from Germany) since the GFC. The Euro was used as a weapon to extract resources from Greece in 2015. I think all of this is down to a badly designed monetary union rather than the Euro itself, but it can hardly be labelled a success.

====================================================================

Question 1; Do you agree that euro membership should be compulsory for all EU member states?

====================================================================

Answer:
Strongly disagree
Confidence level:
Extremely confident
Comment:
Why should being part of the Single Market be tied to being part of a monetary union? There is no strong economic reason for this, which is why some countries have been able to opt out of the monetary union. This is politics driving economics, yet again.

Wages and economic recoveries

====================================================================

Question 2: Do you agree that the different behaviour of UK real wages relative to Eurozone wages during the Great Recession is in large part due to the UK having different labour market policies?

====================================================================

Answer:
Disagree
Confidence level:
Confident
Comment:
There are two main factors that account for the relatively poor performance of UK real wages. The first is a very slow recovery in GDP per head. This slow recovery is partly the result of UK fiscal austerity, but there are almost certainly other factors at play. The second is the large depreciation in sterling in 2008 during the financial crisis, and now a second depreciation following Brexit. Both factors are likely to be more important than labour market policies.

Pages