A pro-growth economic strategy
The UK is enduring a health and economic crisis. Despite near-term uncertainties we believe that a new macro-economic framework can help the UK achieve stronger future growth. This report sets out a new macro-economic policy framework, based on the three arrows: of credible fiscal activism; monetary and financial stability based on a new remit for the Bank of England; and a supply-side agenda that will help the UK overcome and emerge stronger from this crisis. Low borrowing costs create a likely lengthy window of opportunity to emerge from this crisis without being panicked into policy measures such as austerity, but it is possible that inflation and yields could rise, so it is not a risk-free option. Success depends upon a clear and credible policy approach.