There is an economic theory called the J-curve.
The idea is that if you cut public spending whilst cutting limits to bank lending, the private sector will make up for the reduction in public spending.
J curve theory was popular in the 1970s, that period known for low inflation (/s).
No they don’t know what they are doing.
There is an economic theory called the J-curve. The idea is that if you cut public spending whilst cutting limits to bank lending, the private sector will make up for the reduction in public spending. J curve theory was popular in the 1970s, that period known for low inflation (/s).