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This was clearly a real priority in the grand scheme of making sure the budget deficit is reduced quickly.
At that point, the Fed could help maintain growth by instead continuing very low rates as the deficit is reduced.
"The net effect is the deficit is reduced at the same pace – not faster, not slower – than in the last parliament".
He suggests instead the new institution could become a bank able to raise finance over time, as the UK's deficit is reduced.
If the current-account deficit is reduced through an increase in household saving, spending on non-traded as well as traded goods will drop.
And you can make the case that austerity, at least at this level of harshness, is actually counterproductive even in fiscal terms: it depresses growth, so that the debt position becomes worse even if the current budget deficit is reduced.
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Why can't said deficit be reduced through additional tax revenues?
The final accounts last week showed the deficit was reduced to £25m.
Short version: this year's deficit was reduced because bail-outs were cheaper than anticipated.
Hungary has already been through nearly four years of austerity in which the deficit was reduced from 9%to3.8%8% of GDP.
The trustees said the scheme was very likely to enter the PPF unless the deficit was reduced.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com