The Chancellor has announced that he wants to legislate to force future governments to run surpluses in 'normal times'. Two reasons make it hard to comment definitively on this proposal. First, the devil will be in the detail of what constitutes 'normal'. Second, there are many unanswered questions in the theory and empirics of fiscal policy. Nonetheless, a few points as a footnote to what others, particularly
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Surplus of fiscal legislation?
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The Chancellor has announced that he wants to legislate to force future governments to run surpluses in 'normal times'. Two reasons make it hard to comment definitively on this proposal. First, the devil will be in the detail of what constitutes 'normal'. Second, there are many unanswered questions in the theory and empirics of fiscal policy. Nonetheless, a few points as a footnote to what others, particularly