UK austerity and growth: winter is coming

Danny Quah was one of the 20 prominent economists who backed the government’s austerity programme in 2010. This year, he called for a shift of strategy explaining that knowledge of the economy’s current state carries great uncertainty, especially in extraordinary economic circumstances. Danny argues it is important to constantly monitor the state of the economy as well as policy needs in order to respond to changing circumstances. The international environment has shifted in such a way that the urgency for UK rapid debt reduction has lessened, and the argument for effective growth policies needs to be made.