THE ASSESSMENT: MONETARY AND FISCAL POLICY IN THE 1980s

Abstract

The emphasis is on policy in the UK, though many of the issues that arise e.g., about the links between monetary and fiscal policy, or the concern over persistent deficits and debt are general, being faced by other countries as well. The UK's policy has, however, been more extreme and, under the Medium Term Financial Strategy (MFTS), more explicit than elsewhere. The purpose of this Assessment is not primarily prescriptive: rather it is an alytical, intended to lay out some of the major theoretical and empirical issues that underlie policy choice and to stimulate debate.