A path back to growthPublished Mon 23 Jul 2012
After drawing out the two horns of the UK's economic dilemma - weak demand in the short term and the risk of reduced supply capacity and growth potential in the longer term - this paper outlines a range of interrelated policy changes, fiscal and industrial, to address these problems in the round.
It says that the roadmap for growth should have six crucial elements:
- an increase in the scale of quantitative easing
- fiscal measures to boost growth in the short term combined with a reaffirmation of the plan to eliminate the deficit in the medium term
- additional infrastructure spending
- measures to make household debt restructuring easier
- measures to keep the long-term unemployed in touch with the labour market
- an active industrial policy.