IDEAS home Printed from https://ideas.repec.org/a/cup/nierev/v189y2004ip61-63_6.html
   My bibliography  Save this article

The Impact of Fiscal and Monetary Policy Imbalances on the UK Economy

Author

Listed:
  • Barrell, Ray
  • Riley, Rebecca

Abstract

Government expenditure has been rising rapidly as a proportion of GDP in recent years, and has risen from 39.5 per cent in 2002 to 40.9 per cent in 2003 and 2004 and is anticipated to rise to 41.5 per cent in 2005. Around two thirds of this increase in spending is projected to be on current consumption, whilst one third is on net investment. Between the first and the last of these fiscal years we project that the government deficit, as defined by Public Sector Net Borrowing, will have also increased by 1 per cent of GDP. During that period we expect that the output gap will have closed, and hence the deterioration in the public finances must be seen as a consequence of the policy actions of the Government and not as a result of the economic cycle. These policy actions will have contributed to the current unbalanced state of the economy, where we have strong growth and high government borrowing along with a poor and deteriorating current account.

Suggested Citation

  • Barrell, Ray & Riley, Rebecca, 2004. "The Impact of Fiscal and Monetary Policy Imbalances on the UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 189, pages 61-63, July.
    • Handle: RePEc:cup:nierev:v:189:y:2004:i::p:61-63_6
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0027950100010553/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Ali Nasir & Junjie Wu & Milton Yago & Alaa M. Soliman, 2016. "Macroeconomic policy interaction: State dependency and implications for financial stability in UK: A systemic review," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1154283-115, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:nierev:v:189:y:2004:i::p:61-63_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://edirc.repec.org/data/niesruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.