Thursday, 30 October 2008

Borrowing in a recession

This from Fraser Nelson on CoffeeHouse, while recasting his own case for tax cuts.

I agree with the Tory MP who said that “to increase borrowing to deal with an economic downturn is a perfectly sensible thing to do.” I disagree with the MP who said “increasing borrowing is not a strategy for dealing with recession.” Both quotes came from Philip Hammond in the same BBC interview on Monday, which shows the muddy thinking that needs to be sorted.

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