@techreport{Hallett2004Post,
abstract = {Fiscal policy in Britain has changed radically since the Keynesianism of the 1960s and 1970s.
After a passive period under monetarism of the 1980s, fiscal policy is said to have adopted a
leadership role with long term objectives (low debt, the provision of public services/
investment, and social equity), together with an independent central bank. Monetary policy,
operating with instrument independence, then takes care of short run stabilisation. I test this
view \textendash{} confronting it with evidence from the institutional arrangements put in place since
1997; with econometric evidence from the policy responses themselves; and with theoretical
evidence on the incentive to choose such a regime in the first place. I conclude that this claim
is broadly correct. It appears that the UK?s improved performance is a consequence of the
advantages of combining fiscal leadership with an (instrument) independent central bank. The
key feature is the ability to trade target (not instrument) independence in monetary policy to
secure greater coordination between fiscal and monetary strategies.},
author = {Andrew Hughes Hallett},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E61; E52; F42; 330; Stackelberg leadership; policy complementarity; institutional coordination; Finanzpolitik; Geldpolitik; Zentralbankautonomie; Reaktionsfunktion; Sch\"{a}tzung; Grossbritannien},
language = {eng},
number = {1372},
title = {Post-Thatcher fiscal strategies in the UK : an interpretation},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18735},
year = {2004}
}
