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

Voting history

The Eurozone COVID-19 Crisis: EU Policy Options

Question 2: What is the best mechanism to pay for economic support provided by and to EU member states to combat the COVID-19 crisis?

Answer:
Expanded EU budget (with possible borrowing at the EU level)
Confidence level:
Not confident
Comment:
Although I can see a bigger role for the ECB, the first line of eurozone action has to be a fiscal one

Question 1: What is the total size of funding that you would advocate at the EU level in support of its members to weather the COVID-19 crisis this year?

 

 

Answer:
5-10% of GDP
Confidence level:
Not confident
Comment:
I have been a good sport and given a number. But what is the right number depends a lot on what it can be spend on and what the conditions are. There could be solidarity gifts for some expenditures. For other types of expenditures it would make more sense to have loans with some conditions. So depending on what these specifics are the right number could be lower or higher.

Covid-19: Economic Policy Response

Question 2: Which of the following would have the second greatest impact in mitigating the economic effects of the coronavirus economic crisis in the UK?

Answer:
Government transfers to and bailouts of 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.

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.

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