Tagged: UK economics

George Osborne explains Summer Budget 2015 - The Dismal Science

James Zuccollo Jul 22, 2015

The first reckoning for any Budget is when the Office for Budget Responsibility releases its estimates of the fiscal and economic impact of the measures. The second is when the Chancellor appears in front of the Treasury Select Committee and explains the reasoning behind the Budget. George Osborne’s Summer Budget appearance happened yesterday and shed […] … Read More

Why fiscal rules matter: sustainability - The Dismal Science

James Zuccollo Jan 10, 2015

Before Christmas I wrote a couple of posts on fiscal rules and you might very well be asking why it really matters. The first reason is that the current trajectory of public spending is unsustainable, but not in the sense that the Government means it. Sustainability in public spending should be measured over decades, not […] … Read More

A (very) short history of UK fiscal rules - The Dismal Science

James Zuccollo Dec 27, 2014

Earlier this week the UK Government announced its new fiscal rule, which defines the fiscal envelope. For those of you who aren’t British, the deficit exceeded 10% of GDP during the recession and fiscal sustainability has become an important political issue, even for people who aren’t econ junkies! Unfortunately, this new rule is unlikely to […] … Read More

Carney on NGDPLT - The Dismal Science

James Zuccollo Feb 08, 2013

Mark Carney appeared at the Treasury Select Committee today for interrogation before being confirmed as the next Governor of the Bank of England. The big question everybody wanted answered is whether he favoured a move from inflation targeting to NGDP level targeting. The answer is ‘no’, but the reasons are interesting. Carney is a known [...] … Read More

WSJ suggests abandoning economic models - The Dismal Science

James Zuccollo Jan 08, 2013

Simon Nixon has a provocative article in the WSJ where he argues that the current generation of New Keynesian models are useless because of their poor forecast performance. He proposes looking solely at the rate of debt reduction when forecasting economic performance: [The] dismal science’s [forecasting] record suggests is that there is something profoundly wrong [...] … Read More

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