The Greens’ watchdog
Albert Einstein said, “for an idea that does not first seem insane, there is no hope.” If Einstein is right, there is hope for the Greens’ proposal to establish a new office to cost political parties’ new policies. [...]
Fiscal Policy Committee
It’s time Henry had an umpire
Opposition politicians are acutely aware of government’s ability to fiddle the figures to their desire. No shadow treasurer would be worth his salt if he did not complain about the dodgy nature of official forecasts. It is standard practice in Australia and elsewhere. But at least in Britain this could change now, and I am happy to say that I played a minor role in it. [...]
A plea to the next Chancellor
We, therefore, believe that any future Chancellor should learn from Mr Brown’s experience and begin his stewardship of the economy with a step that matches Gordon Brown’s courage in giving independence to the Bank of England. This is why we suggest sourcing out both the stewardship of the fiscal rules and the Treasury’s economic forecasting activities to an independent Fiscal Policy Committee (FPC), to be modelled on the MPC. In fact, we think that this is the first policy decision that Gordon Brown’s successor should make. [...]