The government’s policy in dealing with the rising debt burden in the current low growth environment is indeed justified

Looking at the relationship between the UK’s public debt levels and economic growth using data from 1831 to 2013, Costas Milas finds that public debt has been a drag on the UK economy in the last few years. This justifies the government’s decision to put in order its finances. Equally important, the time to resume interest rate hikes is when economic growth hits 3%.