Wouter Den Haan's picture
Affiliation: 
London School of Economics
Credentials: 
Professor of economics

Voting history

ECB Monetary Policy and Catch-up Inflation

Question 2: Which of the following policies is the most desirable to meet the ECBs objective to achieve its mandate of “price stability” as you understand this term.

Answer:
Average inflation targeting
Confidence level:
Not confident

Question 1: To what extent do you agree with the following statement? “The European Central Bank should systematically allow for inflation to exceed its target to compensate for periods of below target inflation.”

Answer:
Agree
Confidence level:
Not confident
Comment:
I find the arguments for average inflation targeting compelling but I am worried on whether it can work in practice. Specifically, I wouldn't be surprised if central banks would take low inflation observed in the recent past into account (for example as a reason not to respond to current or expected inflationary pressures) but would ignore let high past inflation. I am also worried about the lack of transparency in how past inflation is taken into account.

Monetary Policy and Inequality

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

Answer:
Minimal role
Confidence level:
Confident
Comment:
Since we still do not quite understand the role of monetary policy on inequality very well, it doesn't make sense to give it a substantive role. Nevertheless, I would think it important that policy makers stay alert to the consequences of their actions on this very important economic indicator.

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

Answer:
Large
Confidence level:
Not confident
Comment:
To be precise, monetary policy CAN have a large impact on inequality but then I am thinking of sustained quantitative easing that we have seen since the financial crisis.

Central Bank Digital Currency for the UK

Question 2: What effect will the introduction of a CBDC have on UK banks?

Answer:
No or little effect
Confidence level:
Not confident
Comment:
The transition towards a system in which banks rely less deposits will have some costs, but surely it will be a better system with less distortions when banks' lending occurs less with funding like deposits that seem cheap to banks but that come with a nontrivial social cost in the form of financial instability.

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