Recession ready?

Assessing the UK’s macroeconomic framework

This report is the launch paper for the Resolution Foundation’s Macroeconomic Policy Unit. It provides the most comprehensive assessment of the UK’s macroeconomic policy framework since the financial crisis, focusing on the ability of the framework to provide effective support to the economy in the face of the next recession. This work is important, given the crucial role macroeconomic policy plays in mitigating the negative impacts of downturns, and urgent given that the UK faces its highest recession risk since the financial crisis.

We find that the UK’s macroeconomic policy framework has not kept pace with significant changes to our economic environment and is therefore at risk of leaving the country underprepared for the next recession. That is not a risk policy makers should take lightly.