Post-Covid Fiscal Rules for the UK
Tuesday, October 26, 2021
The majority of the CfM panel of experts on the UK economy thinks that the sequence of fiscal rules in place in the UK since 1997 have caused a material reduction in UK public debt. However, twice as many panellists thought these rules harmed the conduct of macroeconomic policy than those that thought they helped. Going forward, a majority of the panel believes that well designed rules limiting public deficits or debts would best improve the conduct of macroeconomic policy, but nearly a third of the panel would scrap fiscal rules altogether.