Government Debts and Fiscal Deficits in the United Kingdom: A Critical Review. (1st April 2019)

• Record Type: Journal Article
• Authors: Siddiqui, Kalim
• Is Part Of: World review of political economy. Volume 10:Number 1(2019)
• Page Start: 40
• Page End: 68
• Publication Date: 2019-04-01
• Subjects: government debts -- public deficits -- austerity -- fiscal policy -- neoliberalism; Economics -- Political aspects -- Periodicals; Economic development -- Periodicals; Economic policy -- Periodicals; Economic development; Economic policy; Economics -- Political aspects; Periodicals; 330.05
• DOI: 10.13169/worlrevipoliecon.10.1.0040
• Languages: English
• ISSNs: 2042-8928

Abstract

Abstract : This article intends to examine the issues of public debt and austerity policy in the United Kingdom. It attempts to provide an evaluation of fiscal policy under neoliberalism and to consider the relationship between this policy and the macroeconomic performance of the United Kingdom economy. There also seem to be ambiguities among the policy makers about austerity. Therefore, it seems important to examine the issue of government-imposed austerity policies and fiscal deficits. There is a need to borrow to cover the deficits as there is no inflationary pressure in the United Kingdom. Most democratic solutions against any inflationary pressures are to reduce the money in circulation through higher taxes. This study concludes that increased state intervention, as a means to enhance long-term growth, is crucial for achieving economic stability and greater equality.