The IMF’s latest assessment of the British economy is in and although the body has once again endorsed Osborne’s Plan A, it does so with several notable caveats. Ajai Chopra, the IMF mission chief to the UK, writes in a blog that the government should respond quickly with “further quantitative easing” and “temporary tax cuts” if it looks as though the economy is headed for a “prolonged period of weak growth, high unemployment and subdued inflation.” It’s important to add that the IMF says it currently doesn’t expect this happen but Vince Cable – who has called for “more radical” forms of QE – may have found an ally.
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