Policy frameworks in the UK and EMU

This publication is part of a set of 18 documents which have been prepared by H.M.

Treasury to inform the assessment of the Government's five economic tests for Economic and Monetary Union (EMU) entry into the euro area.

This study examines the robustness of the frameworks for macroeconomic policy in both the UK and the euro area, and the implications for the UK in achieving the Government's objective of high stable levels of economic growth and employment, whether in or out of EMU.

The assessment of robustness is determined by considering three key objectives of achieving credibility, flexibility and legitimacy.