T£€NONOMIC$
May 6th 2014
page 6
BRITONOMICS
We can’t put our feet up quite yet...
finally on the
B ritain isone of the most
mend after
damaging financial crises
since the Great Depression.
As the recovery gathers pace
we must look into how we
can prevent another financial
disaster.
To get things started the
government must achieve a
smooth shift from a recovery
led fiscal policy to a more
sustainable approach. With Britain's
deficit so deeply in the red it is vital that
the government achieves a balanced
budget as soon as possible before the rest
of the economy is dragged down with it.
(Source: theguardian)
suppressed this and left Britain trapped in
a bubble of decline. This does not however
mean that expansionary policy can not be
used effectively. The extremely low B of E
interest rate of 0.5% will be sustained over
coming months if not years, giving busiThis is where the austerity policies have
nesses and consumers greater confidence
been implemented to try and cut back on
such a bulky debt. Austerity refers to gov- to spend and bring forward investment
ernment policies in w