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

Voting history

Covid-19: Economic Policy Response

Question 3: Which would be the maximal public debt you would be willing to tolerate if used effectively (as in your answers to 1 and 2 above) to support an economic recovery?

Answer:
>140% of GDP
Confidence level:
Not confident
Comment:
whatever it takes

Question 1: Which of the following would have the greatest impact in mitigating the economic effects of the coronavirus economic crisis?

Answer:
Government credit support for businesses
Confidence level:
Not confident
Comment:
To avoid long-term negative consequences, t is essential that we keep the economy's business network intact. To ensure this the first step is to offer credit support to survive a period of revenue reductions. However, when the revenues will be low for a sustained period, then more direct support/transfers will be necessary since the built up debt will not be sustainable.

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

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