George Osborne’s austerity plan – now abandoned by the Tories – was the most costly macroeconomic policy mistake since the 1930s.
Osborne is using the budget as an excuse for reducing the size of the state. Labour must not follow his lead.
How did the coalition government manage to transform the media debate on macroeconomics so comprehensively - and what will happen now they have?
An essay by Simon Wren-Lewis, Professor of Economic Policy, Blavatnik School of Government, Oxford University and a Fellow of Merton College, Oxford University, which appears in the latest collection from the Resolution Foundation.