This can’t wait until chancellor lays out his medium-term fiscal plan on November 23rd, Monks warned .“But there is still no clear sign that the source of the problem - the government’s fiscal strategy - is being reversed or reconsidered.10.20Larry Summers, a former US Treasury secretary, has warned that the UK government’s ‘utterly irresponsible’ plans could drag the pound below parity against the euro, as well as the dollar.
The first step in regaining credibility is not saying incredible things. I was surprised when the new chancellor spoke over the weekend of the need for even more tax cuts.Summers pointed to surging interest rates of long-dated British debt as a “hallmark of situations where credibility has been lost”.
Summers warns that there could be global consequences from a currency crisis in the pound, as it is a reserve currency.
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