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

Voting history

Fiscal Rules in the European Monetary Union

Proposition 1: The existing fiscal rules for European Monetary Union members require revision.

Answer:
Strongly agree
Confidence level:
Confident

Asset Prices and Monetary Policy

Proposition 2: Asset prices and financial imbalances are best addressed using macroprudential tools and left out of the monetary policy decision making process.

 

Answer:
Disagree
Confidence level:
Not confident
Comment:
It may very well be true that asset prices and especially financial imbalances are usually best addressed using macro prudential tools. But that doesn't mean that they shouldn't play a role in conventional monetary policy decision making. For starters, these factors could affect inflationary pressure.

Proposition 1: The Bank of England’s mandate should be officially modified to take housing or other asset prices into account in its monetary policy decisions.

Answer:
Strongly disagree
Confidence level:
Not confident
Comment:
I would think that the current mandate already allows "to take into account" asset prices. But when and how they should be taken into account in achieving the Bank's objectives should be left to the monetary policy committee. Asset prices shouldn't be an objective in itself like inflation, overall economic activity and financial stability.

The “Spend Now, Tax Later” Budget

Question 3: Which of the following best characterizes the pace at which the budget addresses UK’s medium term fiscal challenges (deficit and debt)?

Answer:
Reduces deficits too rapidly
Confidence level:
Confident
Comment:
I chose too rapidly mainly because I want to signal that in this continued low interest rate environment, the UK shouldn't worry about paying back the debt soon.

Question 2: To what extent will the “super deduction” aide the UK’s recovery from the Covid recession?

Answer:
Moderately
Confidence level:
Very confident
Comment:
I chose moderately because very few things if any will have a truly significant effect on the recovery. But this seems like a sensible plan especially to prevent firms from postponing investment given the reduction in the corporate tax rate.

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