asterisk2a + productivity + liquidity-trap + working   2

British austerity is no model for the rest of the world - FT.com
the pace of fiscal contraction has slowed over the past two years. This means that the brake on growth caused by fiscal policy is becoming more attenuated. So the turnround in growth over the past 18 months is as much evidence against austerity as it is pro-austerity. Second, faced with the potential damage caused by the deficit reduction to demand and economic growth, the UK government has been forced to introduce a number of extraordinary measures to support lending. [...] It certainly should not, however, be seen as any kind of inspiration to other companies or countries. + http://www.telegraph.co.uk/finance/economics/10807988/Rapid-rate-rises-could-throw-UK-back-into-recession.html
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may 2014 by asterisk2a
BBC News - Worrying trends for the UK economy
In other words, the record amount of private debt, which has just reached £1.43 trillion, points to how borrowing has fuelled consumption. As we saw from the crash five years ago when debt was lower than now, debt-fuelled consumption isn't a sustainable or reliable source of growth. [...] Could the UK be facing what the US economist Larry Summers has described as America's "secular stagnation". It's a worry that the ageing population and a slower growth of the labour force mean a slower growing economy.
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december 2013 by asterisk2a

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