"Monetary policy or Fiscal policy, which tool is better to combat Euro-zone recession?"
|
|
The survey was conducted by e-mail (October 29-November7)
among
academics and economists mostly from Euro-zone countries.
Question
The Euro-zone may be on the brink of a full-blow recession.
Most
growth forecasts for 2001 and 2002 have been lowered substantially
in recent weeks, and some of them predict economic activity could
well contract in the final quarter of this year.
The stabilization role of demand policies and the
proper policy mix
is going to be a hot issue in the European public debate during
the
next months. That's why the OBCE asks academics and economists
to participate in this informal survey: "Monetary policy or
Fiscal
policy, which tool is better to combat Euro-zone recession?"
Results
|
| 1
- |
The
boost to the economy should come mainly from lower ECB interest
rates |
|
| 2
- |
The
boost to the economy should come mainly from
fiscal policy |
|
| 3
- |
Both tools should be aggressively used to stimulate
the economy |
|
| 4
- |
Neither
monetary policy nor fiscal policy should be
used to try to correct cyclical fluctuations |
|
| 5 - |
Other responses 2,1% |
|
|
Total number of respondents ...190
The survey shows that:
• One third of respondents currently see monetary policy as
the main policy tool
to combat recession.
• About two thirds, 62,4% (1+3), think monetary policy should
be used to boost the economy, including 28,9% who say that both
tools, fiscal and monetary policy, should be aggressively used.
• We all aren't keynesians: 19,4% say it is better not to use
demand policies for stabilization purposes.
Comments, and feedback are welcome at: obcemaster@iei.uv.es
OBCE's surveys are not "scientific", but do represent
the collective opinion of everyone who participates. They intend
to stimulate debate and offer a forum to express your opinion on
the hottest topics about the Euro-zone economy and
ECB policies.
|