White House portrait of Lawrence Summers. (Photo credit: Wikipedia)
This is a MUST-READ article by Larry Summers, Charles W Eliot university professor at Harvard and a former US Treasury secretary. It’s published in the FT.
Brtish austerity is no model for the rest of the world – FT.com.
Personally, I agree with Larry Summers but feel that he’s been too polite by far.
For me, David Cameron’s UK Government has been reckless in stimulating demand on the back of a government guaranteed domestic property inflationary bubble. This blog has been advocating, for some time, wider policies that addressed skills, competitiveness and exports.
Let me turn this to an open question:
Given the UK‘recent increase in economic growth, how should government policy be changed to broaden and deepen the growth so that it is sustainable for a longer period?