The government wants us to believe our economic growth is sustainable, and that budgetary surplus will fix all our problems. But these are dangerous myths
British public life has always been riddled with taboos, and nowhere is this more true than in the realm of economics. You can say anything you like about sex nowadays, but the moment the topic turns to fiscal policy, there are endless things that everyone knows, that are even written up in textbooks and scholarly articles, but no one is supposed to talk about in public. It’s a real problem. Because of these taboos, it’s impossible to talk about the real reasons for the 2008 crash, and this makes it almost certain something like it will happen again. Continue reading
A deeply troubled Europe faces two years of even weaker-than-expected economic growth that will lack the heft to ease its high jobless rates.
The European Central Bank now sees the euro zone economy contracting by 0.5 per cent this year, slightly worse than its original projection of 0.4 per cent. The new 2013 forecast for the 17-nation group calls for a contraction of 0.3 per cent, compared with an earlier projection of 0.5-per-cent growth, while 2014 would see growth of 1 per cent. Continue reading