- Says recovery has stalled
- UK may need to scale back fiscal plans to aid growth
- BOE should expand QE and cut rates
- More from the FT (IMF urges UK to jump-start economy)
The IMF said that if the recovery failed to gather pace by the early part of 2013, then the government would need to slow the pace of fiscal tightening.
The economic elites have decided they don’t like austerity. I think that’s the way the tide is shifting. It’s a positive for short-term growth but there can be no doubt that a genuine debt crisis is coming, or inflation.
