Monday, June 06, 2011

Correction - Plan B advocates not economists, still Balls

Very good article on ConservativeHome on the background of those 'economists' who are suggesting a change to government economic policy. It turns out that a fairly large number of them are not economists, but soft-subject academics instead. So, we have expertise in History, Cultural Studies, Human resources and so on, but precious little in the subject that they are pontificating about.

A better headline to yesterday's media coverage would have been 'Labour unable to find actual economists to back Balls'.

Meanwhile the IMF have endorsed the government's approach, the key passage from their report being:
However, the weakness in economic growth and rise in inflation over the last several months was unexpected. This raises the question whether it is time to adjust macroeconomic policies. The answer is no as the deviations are largely temporary. Strong fiscal consolidation is underway and remains essential to achieve a more sustainable budgetary position, thus reducing fiscal risks.
Not exactly equivocal.

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