The Macroeconomics of Parties' Tax and Spending Plans
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.
