Front Matter Page
Fiscal Affairs Department
Authorized for distribution by Richard Hemming
Contents
I. Introduction
II. Assessing Fiscal Rules
A. The U.K. Government’s Rationale for its Fiscal Rules
B. Different Methods of Assessing Fiscal Rules
III. Assessment Against Ideal Rule Characteristics
A. Well-Defined
B. Transparency
Transparency in institutional arrangements
Transparency in measurement and presentation
Transparency in forecasting
Transparency in analysis
Overall transparency
C. Adequate with Respect to the Specified Goal
Sound public finances
Intergenerational fairness
Removes bias against capital spending
Overall assessment against objectives
D. Simplicity, Flexibility, and Enforceability
E. Consistency
F. Supported by Efficient Policy Actions
IV. Summary and Conclusions
Boxes
1. The Literature on Fiscal Rules
2. Optimal Debt
3. The Arithmetic of U.K. Fiscal Rules