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U.K. Bust Needs Big Spender: Victoria Chick and Ann Pettifor

Until recently, there was almost complete agreement on the need for a period of synchronized austerity across Europe. This consensus, at a time of private-sector weakness and banking fragility, is very worrying.

But Alan Budd’s resignation as chairman of the British government’s newly established Office of Budget Responsibility, coupled with a growing number of dissenting voices, suggests a fault line in this consensus. Nevertheless even most of those who dissent do so not because they support fiscal stimulus but only because they fear that a “consolidation” is premature.