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Fiscal Policy in the UK
Author(s) -
Henry Brian
Publication year - 2001
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/1468-0319.00291
Subject(s) - fiscal policy , economics , revenue , monetary policy , monetary economics , macroeconomics , balance (ability) , exchange rate , fiscal union , extension (predicate logic) , economic policy , finance , medicine , computer science , physical medicine and rehabilitation , programming language
Although the conduct of macroeconomic policy in the UK has been very good by historical standards, Brian Henry [Note 1. Brian Henry is Director of the Centre for International ...] argues in this article that there are shortcomings in the framework which mean it is less well suited to adverse shocks than it should be. He recommends that an extension of the present framework be made setting up a committee charged with the independent assessment of fiscal policy. This would help mitigate the lack of balance between monetary and fiscal policy which is evident at present. Fiscal judgements based on cyclical adjustments are too heavily dependant on domestic factors and underestimate the effects of the cycle on revenues. In consequence, fiscal policy, rather than supporting monetary, has been loosened and this indirectly accounts for the continuing strength of the exchange rate.