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No Plan B: But is There a 'Third Way'?

Authors :
Matthews, Kent
Source :
Economic Affairs; Jun2013, Vol. 33 Issue 2, p220-231, 12p, 1 Chart, 6 Graphs
Publication Year :
2013

Abstract

This paper reviews the argument for a slowdown in the fiscal consolidation policy of the UK government. It reviews the existing literature and the evidence of the interwar period in the UK where a recovery occurred without a relaxation of the tight fiscal regime of the period. It argues that even in a zero-lower-bound, the evidence for a plan B is weak. Given that there may have been significant capacity destruction, the paper suggests a third way that calls for a supply-side framework that sets the condition for an improvement in long-term growth and productivity. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
02650665
Volume :
33
Issue :
2
Database :
Complementary Index
Journal :
Economic Affairs
Publication Type :
Academic Journal
Accession number :
87989950
Full Text :
https://doi.org/10.1111/ecaf.12014