Sir Charles Bean's picture
Affiliation: 
London School of Economics
Credentials: 
MA Cambridge
PhD MIT

Voting history

The “Spend Now, Tax Later” Budget

Question 2: To what extent will the “super deduction” aide the UK’s recovery from the Covid recession?

Answer:
Moderately
Confidence level:
Confident
Comment:
The generous super deduction will strongly encourage businesses to bring forward investment projects (it will also shift some marginal projects into profitability), though the magnitude of that intertemporal reallocation effect is highly uncertain. However, the dominant determinant of the pace of the recovery will be the speed at which consumption recovers as the health restrictions are lifted.

Question 1: How will the increase in the corporate tax rate from 19% to 25% affect the UK’s international competitiveness in the medium term?

 

Answer:
Moderate damage
Confidence level:
Not confident
Comment:
The corporate tax rate is but one factor that affects companies location decisions. Factors such as the stabilty and reliability of the legal environment, the cost and availability of appropriately skilled labour, the connectedness of transport systems, the height of international trade barriers, etc., are equally important. So the picture needs to be considered in the round.

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?

Answer:
Yes
Confidence level:
Confident

 Question 1: Which of the following actions is the most advisable approach for European Central Bank to address the environmental impact of its bond-purchasing policies?

Answer:
Aiming for market neutrality
Confidence level:
Very confident
Comment:
I would be more than happy to see the ECB (and other central banks) skew their operations to foster the greening of the economy and to meet climate objectives. But the initiative to do this should in the first instance come from the appropriate political authorities. Central banks should only stray beyond their mandates if they have the support of the political authorities, as otherwise they lack the necessary democratic legitimacy. In this instance, the impetus should come first from the European Council, the European Parliament and the European Commission.

Should We Worry About Post-Covid Inflation?

Question 2: Which of the following will be the greatest inflationary (or deflationary) force facing the UK economy?

Answer:
Past monetary policy decisions and other monetary factors
Confidence level:
Not confident

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