Kate Barker, former member of the Monetary Policy Committee (MPC) at the Bank of England, has written a report in which she is highly critical of the government’s austerity measures
The report, Macroeconomic policy: too much autonomy and too little coordination, adds Barker’s voice to a growing number of economists and business leaders calling for the chancellor to relax his strict spending cut regime and take measures to boost economic growth.
She said chancellor George Osborne had left himself no “room for manoeuvre” to combat the recession by saying that he would not budge from his debt and deficit reduction targets.
In her report, Barker, says, “The insistence by the Chancellor that there should be no deviation from the fiscal plan may be making it more difficult to announce adequate responses to unexpected economic events.
Yesterday, Adam Posen, outgoing member of the MPC, called on Osborne to use Britain’s record low borrowing costs to increase targeted spending.
This story can be read in full at economia.