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  • Anforme How effective has fiscal policy been in determining the UK’s macroeconomic performance.

Anforme How effective has fiscal policy been in determining the UK’s macroeconomic performance.

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How effective has fiscal policy been in determining the UK’s macroeconomic performance.

Andrew Robertson, Head of Economics and Business Studies, Alleyn’s School, and a Principal Examiner, reviews the experience of UK governments using discretionary fiscal policies.

Summary of contents:

  • Explains the circular flow, budget deficits and surpluses and Keynesian demand management with diagram.
  • Passive fiscal policy: How does this work? A look at automatic stabilisers and the Public Sector Net Cash Requirement.
  • Sources of government borrowing and their effects. Does it matter where the government borrows from and what are the implications for inflation and the crowding out of private sector investment.
  • The targets of fiscal policy set by the Coalition government.
  • Austerity or expansion. Examines the economic implications of each.
  • Conclusion. 8 charts and diagrams are included.


This article is featured in ET volume 19 issue 4

How effective has fiscal policy been in determining the UK’s macroeconomic performance.

Andrew Robertson, Head of Economics and Business Studies, Alleyn’s School, and a Principal Examiner, reviews the experience of UK governments using discretionary fiscal policies.

Summary of contents:

  • Explains the circular flow, budget deficits and surpluses and Keynesian demand management with diagram.
  • Passive fiscal policy: How does this work? A look at automatic stabilisers and the Public Sector Net Cash Requirement.
  • Sources of government borrowing and their effects. Does it matter where the government borrows from and what are the implications for inflation and the crowding out of private sector investment.
  • The targets of fiscal policy set by the Coalition government.
  • Austerity or expansion. Examines the economic implications of each.
  • Conclusion. 8 charts and diagrams are included.


This article is featured in ET volume 19 issue 4

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