British austerity is no model for the rest of the world – Larry Summers – FT.com

White House portrait of Lawrence Summers.

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?

Any thoughts?

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