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The Uncertainty of Government Debt Projections

Published online by Cambridge University Press:  26 March 2020

Ian Hurst  and
Rebecca Riley
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Extract

Since 1998, fiscal policy in the UK has been guided by two rules: the golden rule to borrow over the economic cycle only to invest, such that the average annual surplus on the public sector current budget as a share of GDP is greater or equal to zero; and the sustainable investment rule that public sector net debt should not exceed 40 per cent of GDP over the economic cycle.

Type
Research Article
Information
National Institute Economic Review , Volume 195 , January 2006 , pp. 58 - 59
Copyright
Copyright © 2006 National Institute of Economic and Social Research

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Footnotes

∗Thanks to Ray Barrell, Simon Kirby and Martin Weale for helpful suggestions.

References

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NIESR (2003), ‘Uncertainties in the public sector forecast’, National Institute Economic Review, 183, pp. 41–42.CrossRefGoogle Scholar