Britain: Gordon Brown’s rule book goes into dustbin of history

Sunday Times ^ | 07/20/08 | David Smith

[TigerLikesRooster]

Gordon Brown’s rule book goes into dustbin of history

Economic Outlook: David Smith

ON my bookshelf there is a tome I have been meaning to dip back into for some time. It is called Reforming Britain’s Economic and Financial Policy.

Written by Ed Balls, then Treasury chief economic adviser, now in charge of what used to be the education department, and Gus O’Donnell, then head of the government’s economic service, now head of the civil service, it was intended to be the bible of new Labour macroeconomic policy.

The foreword was by Gordon Brown, who was inspired by his own achievement. The reforms of 1997 ranked alongside those of the 1940s, he suggested, as he traced the “intellectual journey” to “an institutional framework that commanded market credibility and public trust”.

The three pillars of this new framework were an independent Bank of England to deliver low inflation, “a fiscal policy framework which is delivering sound public finances” and a Financial Services Authority to ensure financial stability. The book was sold as suitable for students. Maybe it is now only appropriate for historians, particularly those interested in crumbling pillars.

What should we make of the fiscal policy pillar of which Brown was so proud when Treasury officials are busy working on a rewriting of his rules?

[TigerLikesRooster]

Ping!

[goldstategop]

When you're in political trouble, the first thing that gets sacrificed is your own credibility.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Jabba the Nutt]

Anyone, who believes that you can create lasting financial stability needs to see me, I have some Florida property and a couple of bridges for sale.