Patrick Minford's picture
Affiliation: 
Cardiff Business School
Credentials: 
Professor of economics

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.

Answer:
Disagree
Confidence level:
Confident
Comment:
Budget deficits are needed in times of emergency. Yet commitment to responsible fiscal behaviour (ie at present to getting debt down again as % of GDP) is also necessary. Constitutional rules will simply obstruct the former while not adding to commitment; indeed their necessary breaking would create noise. I prefer the current experiment with a 'Fiscal Advisory Authority in the UK ('Office of Budget Responsibility'). Here commitment is maintained via the need to demonstrate soundness; but ability to respond to events is preserved.

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