Douglas Carswell's Blog

Recovery needs Plan A+

Simon Nixon has a great piece in today's Wall Street Journal; "For the past two years, much of the mainstream economics profession has been engaged in a highly politicized but largely futile debate over how best to boost U.K. demand, whether through greater fiscal stimulus or more quantitative easing."

"But it is now becoming clear the U.K.'s problem is one of supply, not demand".

The government's print-money-and-pray approach will not solve the economic mess we are in. Manipulating the supply of credit will not sort out a problem caused by the manipulation of the supply of credit - and all the consequential malinvestment.

Let's hope they read the Wall Street Journal in the Treasury.

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