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The Uncertainty of Government Debt Projections

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  • Hurst, Ian
  • Riley, Rebecca

Abstract

Since 1998, fiscal policy in the UK has been guided by two rules: the golden rule to borrow over the economic cycle only to invest, such that the average annual surplus on the public sector current budget as a share of GDP is greater or equal to zero; and the sustainable investment rule that public sector net debt should not exceed 40 per cent of GDP over the economic cycle.

Suggested Citation

  • Hurst, Ian & Riley, Rebecca, 2006. "The Uncertainty of Government Debt Projections," National Institute Economic Review, National Institute of Economic and Social Research, vol. 195, pages 58-59, January.
    • Handle: RePEc:cup:nierev:v:195:y:2006:i::p:58-59_6
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