Bank of England Steps in to Restore Stability After IMF Warning
TimeMAY 2022
The current economic crisis is the result of a broken model of capitalism, whereby ultra-low interest rates were relied upon to compensate for the anemic growth under austerity politics. Truss and Kwarteng have blindly pursued a Thatcherite economic agenda that has ruined a system already made fragile by deindustrialization, privatization, and, fundamentally, more than four decades of class war.
The government is facing criticism for failing to explain how it will balance the books — something that will be put out in a medium-term strategy statement in November. There is no feasible way to detail this plan earlier as it will depend on too many currently unknown variables. Although the markets may not like uncertainty in the short-term, Truss is right to stand by her tax-cut and growth plan and look forward to a fiscal consolidation program in two months' time.