Are Surpluses Normal?
England’s Chancellor George Osborne took the Conservative Party’s claim to fiscal responsibility one step higher last week when he announced that they will enact a law which will require British governments to run surpluses “in normal times”:
“in normal times, governments of the left as well as the right should run a budget surplus to bear down on debt and prepare for an uncertain future.” (“Mansion House 2015: Speech by the Chancellor of the Exchequer”)
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About Steve Keen
I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.
