Jim O’Neill on the route to growth

The economist, commentator and currency guru Jim O’Neill, who stands down as Chairman of Goldman Sachs Asset Management at the end of April, believes supply side reforms are needed to get the UK economy moving. Interviewed in CityAM Jim argues that a combination of the Coalition Government’s commitment to fiscal austerity and requirements on banks to hold more capital is “a pretty powerful combination” standing in the way of economic recovery. “Part of the problem we’re seeing is that austerity isn’t reform. The Germans have sort of convinced everybody that all you need is austere fiscal policy and some magical growth will happen. But you need to have things that boost the supply side on productivity, and you don’t have that.” Read the article here: http://www.cityam.com/article/mr-brics-we-need-supply-side-reforms

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