Tuesday, 7 September 2010

IMF on the public finances and risk of default

The IMF published three intriguing 'staff position notes' last week: Fiscal Space, Default in Today's Advanced Economies: Unnecessary, Undesirable and Unlikely, and Long-Term Trends in Public Finances in the G-7 Economies. The papers have already attracted much comment: Stephanie Flanders, FT Alphaville and Richard Murphy amongst others. If I can find the time I'll blog again in more detail on the papers, their conclusions and what they imply for the UK. But I think it's safe to say that the papers finally kill one pervasive myth: that the UK was in danger of becoming the next Greece. It isn't and it wasn't. Those who tell you otherwise are wrong, dishonest or both.

Stephen Boyd - STUC

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