Policy frameworks in the UK and EMU: The five tests framework

The EMU study by HM Treasury Policy frameworks in the UK and EMU 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 goal of macroeconomic stability inside or outside EMU. Experience has shown that effective frameworks for macroeconomic policy can make a significant contribution to prosperity and economic stability. The study considers fiscal policy, monetary policy and financial stability, as well as macroeconomic policy coordination.