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The Macroeconomics of Parties' Tax and Spending Plans

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  • Arno Hantzsche
  • Garry Young

Abstract

Most economic analyses of parties' tax and spending promises treat the government's budget like that of a household, ignoring the impact of proposed policies on the economy. This briefing aims to fill this gap by providing a macroeconomic assessment of announced fiscal policies. It focuses on: The impact of the parties' tax and spending plans on economic output and consumer prices; The combined impact of parties' Brexit policies and tax and spending plans on the economy; How monetary policy is likely to respond to prevent inflation rising above target; A discussion of economic policies beyond tax and spending and their effect on the economy.

Suggested Citation

  • Arno Hantzsche & Garry Young, 2019. "The Macroeconomics of Parties' Tax and Spending Plans," National Institute of Economic and Social Research (NIESR) General Election Briefings, National Institute of Economic and Social Research, issue 8, December.
    • Handle: RePEc:nsr:niesrg:i:8:m:december:y:2019
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    File URL: https://www.niesr.ac.uk/wp-content/uploads/2021/10/NIESR-Election-Briefing-The-Macroeconomics-of-Parties-Tax-and-Spending-Plans-4.pdf?ver=7Lo2Qh5IUvGfNl7Su0lf
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