IMF Staff Country Reports

United Kingdom: Selected Issues Paper

Publication Date:

November 9, 2010

Electronic Access:

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Summary:

This paper estimates the extent of spare capacity in the U.K. economy using a range of methodologies pointing to an output gap and the behavior of inflation during large output gaps. The usefulness of fiscal rules in supporting fiscal consolidation is generally positive, and a more permanent rules-based fiscal framework is required. The banking system has recovered fast; however, the sustainability of the sector’s recovery is still uncertain, and risks remain. An update on reforms to the financial sector’s regulatory and supervisory framework is also provided.

Series:

Country Report No. 2010/337

Subject:

Expenditure Fiscal consolidation Fiscal policy Fiscal rules Fiscal stance Output gap Production

Frequency:

Biannually