Treasury hints at change to Brown's 'golden rule' - papers 29th March

Key to the current "golden rule" is the definition of when a new economic cycle begins and ends, but yesterday the Treasury's top civil servant refused to be drawn on how the department would measure the economic cycle it thinks is beginning sometime early in 2007. Nicholas Macpherson, permanent secretary, told the Treasury committee officials have "got to keep looking at this and learn from experience". A new definition of the fiscal rules would receive widespread support outside government since the current versions have lost credibility. Almost no independent economists use them...