Perfomance can be judged against the economy's past and current record in:
Reducing and then maintaining a low level of unemployment
Achieving and then sustaining a satisfactory rate of economic growth, uniterrupted by excessive inequality in the distrubution of income and wealth
Controlling inflation and avoiding destabilising swings in the inflation rate
Improving the competitiveness in international markets of the country's industries
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The role of performance indicators in the setting
Can be used for comparing the performance of the UK with that of other countries
Lead indicators
provide information about the future state of the economy
surveys of consumer and businesws confidence and investment intentions indicate the existence of feel-good or feel-bad factors and provide information about the likely state of AD a few months ahead
Statistic for house-building and holiday bookings provide information about future spendings, While data on commodity and input prices can signal future changes in retail price inflation
Lag indicators
Provide information about the extent to which past economic peformance had led to an outcome that meets the different criteria listed for macro performance
Data on the level of GDP and current and recent employment - provide information about current and recent economic performance
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