Mundy's Moments: Why government will continue to resort to financial repression

Future remains 'pretty bleak'

Each year, the UK's Office for Budget Responsibility (OBR) publishes a Fiscal Sustainability Report specifically studying long-term projections of the government's finances.

In the last report, published in January, the OBR said: "The central projection in each of our reports - since the first was published in 2011 - has pointed to an unsustainable fiscal position over the long term." It highlighted an ageing population will require greater spending, while the same demographic trends leave government revenues roughly stable - a worrying combination. Economists Carmen and Vincent Reinhart  and Kenneth Rogoff published a paper, Dealing with Debt, in January 2015 in which they laid out a "complete menu of options". Investec's Mundy: Shareholders must appr...