'Constrained Discretion' in UK Monetary and Regional Policy

Eric McVittie, J Kim Swales

Research output: Working paperDiscussion paper

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Abstract

HM Treasury claims that the notion of “Constrained Discretion” which directs the effective operation of UK monetary policy applies equally to other delegated and devolved policies, such as the use of Regional Development Agencies in the delivery of UK regional policy. We question this claim from a "transactions cost politics" viewpoint. We argue that the delegation of responsibility for monetary stabilisation raises principal agent issues quite different to those encountered in the delegation of the responsibility for regional regeneration. Therefore the effectiveness and transparency that characterises present-day monetary policy cannot be expected in regional policy. Further, the detailed theoretical and empirical case for delegated
Regional Development Agencies has yet to be made.
Original languageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Number of pages29
Publication statusPublished - 13 Jan 2004

Publication series

NameStrathclyde Discussion Papers in Economics
PublisherUniversity of Strathclyde
Volume04-06

Keywords

  • economic and political geography
  • governance
  • labour economics
  • planning
  • regional development
  • regional geography urban studies
  • transactions cost politics

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