THE SUNDAY TIMES: A GROUP of leading economists has attacked the government for its “irresponsible” failure to set out “even the rudiments” of a convincing plan to reduce Britain’s £178 billion budget deficit and warns of “alarming complacency” in the face of the country’s fiscal challenges.
In a letter to The Sunday Times, the economists, including Tim Congdon, Patrick Minford and Gordon Pepper, warn of “heightened risk” of a downgrade of Britain’s sovereign debt rating.
The signatories, several of whom are on the “shadow” monetary policy committee, say that the integrity of UK fiscal and monetary policy is at stake because of the huge budget deficit.
They warn that international investors could see the Bank of England’s £200 billion quantitative easing programme, mainly the purchase of UK government bonds (gilts) as “driven by a politically-motivated desire to ease the government’s funding difficulties”. >>> David Smith, Economics Editor | Sunday, December 27, 2009
