Monday, 27 July 2020

The Government's economic statement

Last Thursday we had a sort of economic statement.

A few people wrote articles on ot so I do not.

My only comment is to disagree with Ross Gittins. He says the Government is about to run a contractionary policy. I think it is more accurate to say it is merely less expansionary. They are taking their foot off the accelerator somewhat.

IMHO a contractionary policy is one that detracts from growth whilst an expansionary policy adds to growth.  My back of the envelope calculations has fiscal policy still adding to growth post September

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