What to do about fiscal rules
We need to make bad economics into bad politics.
Last Monday I published an article in the Economist’s “By Invitation” slot. They have generously allowed me to reprint the text here.
Fiscal rules became fashionable in the 1990s, and now exist in every advanced country and most others. Britain’s first fiscal rule came with the 1992 Maastricht Treaty, which paved the wa…