Public Investment and Potential Output

Issam Samiri (), Benjamin Caswell, Stephen Millard () and Jagjit S. Chadha

National Institute of Economic and Social Research (NIESR) Topical Briefings, 2024, issue 13

Abstract: The recently released OBR Discussion Paper on ‘Public investment and potential output' helps to emphasise our point that well directed public investment can reduce the debt to GDP ratio in the long run by raising the denominator by more than the initial increase in public indebtedness, but that it would most likely take more than the five years focused on by the current fiscal rules to do so.

Date: 2024-10
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