ABSTRACT
This chapter describes the aims of policy and the performance of the economy, and discusses judgements about the performance of policy. It aims to overcome the obstacles by describing the aims and content of economic policy in Scotland, with a particular focus on the period since 1999. Economic outcomes such as the level of income or the number of people in work are the consequence of the interplay of a portfolio of policies. Two important observations about how to assess the performance of policy in Scotland are prompted by the growth model. First, Scotland does not have control over monetary policy, such as the setting of interest rates, and enjoyed very limited fiscal freedom under the Scotland Act 1997. Second, the models give a crucial role to government in stimulating investment and there has been most scope for Scottish administrations to influence productivity growth.
