1
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- The modern use of this range of policies
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2
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- Used more with supply-side policies
- seen as less effective in boosting AD
- monetarists suggest that it could be inflationary
- now used to create stability
- Very few unsuspected tax changes
- Autumn Review
- March Budget
- also now look at micro implications
- aim for competitive economic performance
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3
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- So we now plan and monitor more closely PSNCR
- National debt
- types of taxes used
- how government spending is used
- direct production
- Or transfer incomes
- or interest on national debt
- More interest in government spending multiplier
- spending leads to increased national income?
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4
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- Income tax now lower
- promote hard work, entrepreneurial culture
- make leisure less well rewarded by benefits
- monetary policy now the major platform for macro objectives
- So public borrowing and spending more under control
- precise targets, annual reviews
- three year plans
- public spending has to sit well with monetary policy
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