Keynesian theory really

Although Keynes did suggest government running surpluses during good times, then spending during bad times.

The private sector in the UK seems unwilling to invest at the moment. You just don't want to end up like Japan, trying large amounts of government stimuli with the result being depression.

I think the problem we have at the moment is, on top of all the other problems due to the recession, people are not spending. In some part due to the excess of borrowing which went on during the last 10 years.

Posted By: phrankin, Apr 25, 11:17:31