In his Budget, Chancellor George Osborne described the UK strategy as one of monetary activism and fiscal responsibility
However, the world is coming round to the idea that a tight fiscal, loose monetary policy mix is unlikely to support a recovery in growth when interest rates are close to zero and consumers are intent on paying down debt. A more effective approach would be to ease back on austerity until a recovery is well under way. The current policy mix, leaning ever more heavily on unconventional easing by an unleashed Bank of England, risks a continued slide in the value of the pound and a more extended period of stagflation. The UK's ambitious fiscal tightening plans gained plaudits from the Intern...
To continue reading this article...
Join Investment Week
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
