In collaboration with PRIME, John Weeks has also written a critique of the coalition government’s “deficit disorder” approach to economic recovery. Entitled “Understanding the Crisis: Clarity on measurement, Clarity on policy,” the paper argues that the government’s prioritizing of debt and deficit reduction remain unfounded. Rather, as evidence suggests, financial markets have no reason to be alarmed about the state of UK public finances. The paper advocates a practical, non-ideological policy reversal based on fiscal stimulus, financed through public borrowing and personal income tax increases.
John’s paper can be downloaded free of charge in PRIME’s publication page.