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

Voting history

Monetary Policy and Inequality

Question 2: What role should inequality play in the monetary policy decisions (interest rate policy and quantitative easing)?

Answer:
Substantive role
Confidence level:
Confident
Comment:
By this answer, I mean that CBs should be improving their understanding of the determinants of changes in income and wealth inequality in order to understand better the nature of business and financial cycles, and to learn about how their decisions in line with their existing mandates affect outcomes for inequality.

Question 1: How large is the impact of monetary policy on the joint distribution of income and wealth?

Answer:
No opinion
Confidence level:
Not confident
Comment:
By 'no opinion', I mean 'it all depends', as the cited literature suggests. The effects on both income and wealth inequality come through a wide variety of channels, affecting different parts of each distribution and being affected by the specific cause of the phase of the business cycle (e.g. loose monetary policy in a post housing bust recession would be expected to have a different effect on wealth inequality than a recession caused by an external supply shock) and by national institutions and tax rules.

Fiscal Rules in the European Monetary Union

Question 2: Which of the following is the one reform you would choose to improve fiscal rules?

Answer:
Fiscal councils or fiscal standards
Confidence level:
Not confident
Comment:
Unenforceable rules especially for overly tight fiscal policy remain a problem with proposals to reform the rules. Perhaps the experience with COVID makes the time right to push for expansion of EU fiscal capacity / mutual insurance as the norm in the form of automatic stabilizers. This could complement the work of fiscal councils working to common standards.

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.

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