04 March 2010

Time for a Fiscal Policy Committee (FPC)

“The financial crisis has brought large fiscal deficits and soaring public debt. A switch to tight fiscal policy risks throttling the recovery, but continuing deficits are spooking markets. This column argues the obvious solution is to promise future fiscal rectitude and stick with the current expansionary policies in the near term. This requires independent fiscal policy committees to institutionalise fiscal transparency and restore credibility to governments’ long-term public finances.”

Tim Besley and Andrew Scott on VoxEU

1 comment:

Tom said...

Wasn't he saying in a letter to the Times that fiscal tightening should start now, rather than sticking with the current expansionary policies? Where did all the one-handed economists go?

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