No plan B: But is there A 'third way'?

Research output: Journal PublicationArticlepeer-review


This paper reviews the argument for a slowdown in the fiscal consolidation policy of the UK government. It reviews the existing literature and the evidence of the interwar period in the UK where a recovery occurred without a relaxation of the tight fiscal regime of the period. It argues that even in a zero-lower-bound, the evidence for a plan B is weak. Given that there may have been significant capacity destruction, the paper suggests a third way that calls for a supply-side framework that sets the condition for an improvement in long-term growth and productivity.

Original languageEnglish
Pages (from-to)220-231
Number of pages12
JournalEconomic Affairs
Issue number2
Publication statusPublished - Jun 2013
Externally publishedYes


  • DSGE
  • New Keynesian
  • Supply side
  • ZLB

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Aerospace Engineering


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