Wendy Carlin's picture
Affiliation: 
University College London
Credentials: 
Professor of economics

Voting history

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
Comment:
If such a change is necessary, then the mandate should change. Climate change is non-negotiable.

 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:
Actively biasing its portfolio towards green investments
Confidence level:
Confident
Comment:
Central bank bond purchases should align with decarbonization objectives. This should be combined with incentives to increase the supply of such bonds.

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:
None of the above, other, or no opinion
Confidence level:
Not confident
Comment:
Plausible arguments can be made in relation to many of these factors and it is difficult to judge which of them are likely to dominate over the course of the period to 2030.

 Question 1: Which of the following scenarios is most likely to hold on average for most of the upcoming decade?

Answer:
The BoE will allow inflation to exceed its current target
Confidence level:
Not confident
Comment:
Inflation modestly exceeding the target has been the pattern running up to the COVID crisis and I don't see strong reasons for it to be very different. Weakness in the labour market is likely to persist so that the BoE will tolerate inflation somewhat above its target (in the absence of channels for a process of rising inflation to become entrenched).

Should the ECB Reformulate its Inflation Objective?

Question 3: Which of the following best reflects your opinion on the following statement? “The ECB should explicitly recognize unemployment and/or economic growth as a secondary aim, secondary to its price stability mandate.”

Answer:
Neither agree nor disagree
Confidence level:
Confident
Comment:
The existing ECB official objective can be interpreted this way. But the main problem is the heterogeneity of member country economic performance - recall the divergent performance of members prior to the global finance crisis. With some countries booming and others stagnating, it is not clear how a true dual mandate could work in the eurozone.

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