2 thoughts on “Ditch the structural deficit: Why Osborne has struggled to hit this moving target”

  1. Posted 25/11/2014 at 15:44 | Permalink

    I suspect one reason why governments rather like dealing in Keynesian aggregates is that it leaves them a good deal more wriggle room. If you express your objectives in more specific disaggregated form, it becomes more difficult to ‘explain away’ failures to achieve your stated aims. The other thing we have to remember about parliamentarians is that they are, above all, talkers. Indeed, one almost gets the impression sometimes that merely announcing a target is pretty much the same as actually achieving it. I doubt if our leaders have much of an idea what’s really going on, let alone having any notion of what to do about it.

  2. Posted 25/11/2014 at 18:27 | Permalink

    The problem is that Westminster believes there is no problem and a deficit is really nothing to worry about.

    Look what has happened so far: a huge government debt and a market still willing to lend at these derisory interest rates, a vast current account deficit and still the pound strengthens, a so called bubble free growth rate which outpaces the rest of Europe and a massive monetary expansion with almost no inflation.

    So long as this continues we can expect more of the same.

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