George Osborne has been determined to pursue cuts even as the economy struggles. But continued austerity now could be truly damagingSeven years ago this week,the Bank of England cut interest rates to 0.5% – the lowest since the central bank was founded in 1694. In a drastic tender to stem the fallout from the global financial crisis, then governor Mervyn King and his fellow policymakers also kicked off the process of pumping tens of billions of pounds into the economy.
Unsurprisingly, and Labour chancellor Alistair Darling welcomed the flood of money. The economy had been battered by recession,house prices were falling and unemployment was tall.
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Source: theguardian.com