The Big Question: Is austerity working?

Prudence only way George Godber, Matterley Undervalued Assets fund   The UK and Europe should stick absolutely to their austerity plans. A movement away would illustrate to the international bond market that the countries are in denial of the trillions of debt that have been run up by successive governments. This would push government and domestic interest rates up significantly, punishing consumers and putting pressure on banking systems that would be unable to cope. Economically there is no sound logic to claiming that increasing government spending can boost growth and in fac...