Finally, a statesman who read ALL of Kenyes’ theory
After 8 years of Blair and Bush forget entirely about the need for fiscal policy in combination with monetary policy, Gordon Brown finally uttered something that made sense – and is potentially an attack on what many consider to be Obama’s plans to protect American interests….
The only problem with the statement really is that he doesn’t even infer as to what will drive this growth – as oil becomes more expensive and less available, such expansion wouldn’t feasibly be possible; is it some veiled hint at a “green agenda”?
Gordon Brown today insisted the world economy would double in size over the next 20 years as he argued for the need for a global fiscal and monetary stimulus.
In a speech on financial crisis at the Council on Foreign Relations in New York, the prime minister called for a coordinated approach as countries moved from high to low inflation.
Brown said monetary policy had to be made to work to “best effect” as he reiterated the reasons why banks had to be recapitalised.
The prime minister warned that interest rate cuts would not work without fiscal stimulus.
“The is no doubt that some countries might have zero inflation next year so there is no point having further cuts without a fiscal stimulus,” he said