Econbrowser on the UK
The well respected US blog Econbrowser has an excellent post up on the UK economy which I highly recommend – it draws together work from a variety of sources (IMF, Gavyn Davies, RGE Monitor, etc).
If you read one thing on the UK economy this month, make it this.
Two highlights are a chart from Davies and quote from RGE.
Our main criticism of Plan A is that it is unnecessarily front-loaded in terms of cash impact, as opposed to policy approval. It is inevitable that hastily cobbled together measures to cut costs quickly will have a more detrimental impact on the economy (i.e. a higher fiscal multiplier) than more considered measures aimed at reducing long-term spending. Likewise, the severe cuts to capital expenditure and government investment will have a higher fiscal multiplier than reforms to long-term health provision or pension costs.