Morten Ravn's picture
University College London
Professor of economics
Head of Department

Voting history

Responsible long-term fiscal policy (pilot survey)

Second question:

To help ensure that advanced country governments pursue responsible fiscal policies, countries should adopt formal rules for limiting structural deficits, which are supported by primary legislation or constitutional reform.

Confidence level:
Very confident
Rules are a useful for building a sustainable long term position. A country like Sweden that has a surplus target did relatively well during the recent crisis. Rules have little credibility unless they are formal so some kind of legislation may be useful. It may also be useful then to state circumstances under which the rules can be overcome or temporarily adjusted.