Abstract
The current economic crisis in the UK, which began in 2008, has been the deepest and most prolonged for over a century. The level of output, or gross domestic product (GDP), is now 20 per cent below the pre-2008 trend,1 and the cumulative loss of income since 2007 is equivalent to a whole year’s GDP. Even with the recent upturn in growth, no economic forecaster currently expects full convergence back towards the pre-2008 trend.2 That trend had been well established, at least since 1948 when modern records began. Since there was also continuous growth from the early 1930s to 1948, this means that the UK economy is in new territory not previously experienced in most people’s lifetime.
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© 2015 Graham Gudgin and Ken Coutts
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Gudgin, G., Coutts, K. (2015). Should the UK Continue to Follow Liberal Economic Policies?. In: Green, J., Hay, C., Taylor-Gooby, P. (eds) The British Growth Crisis. Building a Sustainable Political Recovery: SPERI Research & Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9781137441522_2
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DOI: https://doi.org/10.1057/9781137441522_2
Publisher Name: Palgrave Macmillan, London
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