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Why Fiscal Credibility Is Still Important
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Why Fiscal Credibility Is Still Important
16-04-2018, 07:12 AM
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Why Fiscal Credibility Is Still Important

Of the many phrases that pepper the UK’s political discourse, the oft used ‘Magic Money Tree’ has to be the most grating. Its employment is a rhetorical device used to shut down any talk of government spending by hawks who believe any movement away from a narrow focus on cuts as a weapon for reducing the deficit is not only ill-advised, but belongs to the realm of fairy tales. More sophisticated commentators know that macroeconomics is more complex than that and government spending can – in some circumstances – reduce budget deficits.

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