Gap in our knowledge about output and inflation

In this article Samuel Brittan looks at the idea of discretionary fiscal policy replacing monetary policy once Britain is in the euro - a return to Keynesian demand management as some have describe it. The Treasury's proposal worries him, as the output gap would become a policy target rather than a useful tool that can be put aside.

First published in the UK edition of the Financial Times, 20 June.

The British Treasury's assessment of the government's five tests for euro membership is a high

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