Excellent post by Johnathon Portes of the National Institute of Economic and Social Research(NIESR) 23rd April 2013.
An accurate description of the progress on the government’s deficit reduction plan would be:
“We reduced the deficit by a third in our first two years in government, mostly by massive cuts to public investment, which we now understand were a big mistake and have damaged the economy. We’ve also now realised that trying to reduce the deficit further while the economy isn’t growing is self-defeating, so we’re not even going to try to get back on track until it does grow. We won’t miss our fiscal targets, since we no longer really have any. If the IMF understood that we’re not really going anywhere, perhaps they would stop telling us to change course.”
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