"In recent years, the United Kingdom has been remarkably successful in reducing unemployment. The standardized unemployment rate fell from 10 percent in 1993 to 6 percent in 1998, and most observers agree that further reductions can be achieved in the years to come. Also with respect to...

The paper analyses theoretically what role fiscal councils could play and surveys empirically the activities of existing councils. Case studies of the Swedish Fiscal Policy Council and the UK Office for Budget Responsibility are done. It is concluded that fiscal councils should be advisory,...