Spending and stability: How much fiscal space does the UK have?
Article
After devastating turmoil in markets following the government’s mini budget, the key question for the government right now is what its fiscal policy stance should be.
This briefing outlines the current macroeconomic situation and disentangles the binding constraints on fiscal policy in the short term and the medium term.
We challenge the notion that spending cuts are somehow inevitable for restoring macroeconomic stability. We set out an approach that would both stabilise the economy and ensure that public services are on a secure footing.
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