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

Voting history

The UK Productivity Puzzle

Question 4: Which of the following policies would be your second choice of policy to boost private sector productivity, in addition to or absent your first choice?

Answer:
Investments in human capital including education and job retraining.
Confidence level:
Confident

In the last two questions you are asked which government policies are best suited to help the UK emerge from its productivity growth slowdown. Question 3 asks for your most preferred policy option, while question 4 asks for your second choice. You may use the comment section to outline specific policy recommendations.

Question 3: Which of the following policies would best help improve private sector productivity?

Answer:
Regulatory and competition policies, possibly including financial regulation
Confidence level:
Confident

Question 2: Which of the following was the second most important cause for the slowdown in UK productivity growth?

Answer:
Labour market factors
Confidence level:
Confident
Comment:
The UK economy did well in terms of the decline in the unemployment rate following the massive downturn. But the downside of this is that workers will not always find the best match and reach their potential

Question 1: Which of the following was the most important cause for the slowdown in UK productivity growth?

Answer:
None of the above, other, or no opinion
Confidence level:
Confident
Comment:
I think that productivity growth was hampered by disruptions in the financial sector which reduced investment and efficient reallocation of capital

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:
Strongly Agree
Confidence level:
Confident
Comment:
yes, central banks have built enough credibility and inflation expectations seem well anchored. So it makes sense to be cautious and wait for convincing evidence of significant wage and inflation pressure.

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