Sir Christopher Pissarides's picture
Affiliation: 
London School of Economics
Credentials: 
Professor of economics

Voting history

Labour Markets and Monetary Policy

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Question 2: Do you agree that, in a period of great uncertainty and after a prolonged period of weak real wage growth, monetary policy makers can afford to wait for greater certainty about real wage developments and building inflationary pressure before raising interest rates?

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Answer:
Agree
Confidence level:
Very confident
Comment:
Given the uncertainties that we are facing in labour markets, the signal given to markets by an MPC interest rate rise will confuse markets even more. Better wait until there is a clear understanding of what is going on

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Question 1: Do you agree that a strong labour market is a good indicator of building inflationary pressure?

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Answer:
Disagree
Confidence level:
Confident
Comment:
Because of structural changes in the labour market such as deunionisation, shift to services, foreign competition, automation and the rise in inequality, it is not clear any more what is a strong labour market. If by it we mean low unemployment then it is not a good indicator of inflationary pressures because in the old days the inflationary pressures originated in manufacturing and unionised workers which have become too small a group to matter

House Prices and the UK economy

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Question 2: Do you agree that a more widespread weakening of the UK housing market will slow UK GDP growth significantly?

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Make sure to save each question separately

Answer:
Agree
Confidence level:
Confident
Comment:
It is difficult to say whether the slowing down of house prices will cause a slowdown in GDP growth. I believe it is more likely that the same causes of the weakening of the housing market will cause a slowdown of GDP growth. If house prices actually fall they will contribute further to the slowdown

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Question 1: Do you agree that the phenomenon of declining house prices will ripple out from the London property market leading more UK regions to experience falling prices?

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Answer:
Agree
Confidence level:
Confident
Comment:
London is traditionally a leader in house price movements. I believe the cooling off is due to uncertainty about the Brexit deal and I do not see any reason why the rest of the country would be immune to that - although I also think that Brexit will have a bigger impact on the London economy than elsewhere

A “new” UK industrial strategy ?

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Question 1: Do you agree that the UK needs a new industrial policy?

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Answer:
Agree
Confidence level:
Very confident
Comment:
Industrial policy should be directed to new technology and new industries, not to preserving jobs in established industries. A good policy internalised the externalities of new technologies

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