Yes, British Recovery Is Credit Fueled

Jeremy Warner argues that it is “a myth” that Britain’s recovery is credit fueled.

Yet Britain’s net borrowing from abroad has increased to £63 billion or nearly 4% of GDP in the four quarters to Q3 2013, up from £50 billion the year before and just £29 billion in the year to Q3 2011. 

 

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2 Comments

  1. Just shows the absurdity that is government debt. Milton Friedman and Warren Mosler argued that governments should issue no debt at all. The only liability (if you can call it that) that they should issue should be base money. And the amount they should issue should be whatever induces the private sector to spend at a rate that brings full employment.

  2. Pingback: UK External Deficit Increases Further-Savings Fall | Stefan Karlsson's blogg

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