A macroeconomic view of the 1989 Budget
This year the Chancellor introduced a quiet Budget, but not a dull one. In macroeconomic terms, the modest tax cuts that the Chancellor introduced represent a slight tightening of the stance of fiscal policy. This was very much in line with our pre-Budget forecast, and was largely dictated by inflation prospects and balance of payments concerns. Our view, both-pre and post-Budget, is that this stance of fiscal policy, together with continued tight monetary policy, will slow domestic demand growth and inflation, and avert a continued deterioration in the balance of payments. The outlook, therefore, is for a soft landing for the UK economy.
Year of publication: |
1989
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Authors: | Currie, David |
Published in: |
Fiscal Studies. - Institute for Fiscal Studies (IFS). - Vol. 10.1989, 2, p. 1-12
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Publisher: |
Institute for Fiscal Studies (IFS) |
Saved in:
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