After more than four decades of dominance, free market capitalism is facing a challenge.
"What we are saying is that when there is a lack of spending in the economy, when there is already a lot of people with precarious employment or people who are underemployed, and when nobody in the medium term is forecasting any significant inflation, then under those circumstances the appropriate thing for the government to do is to stop talking about balancing its budget," he says.
By contrast, if you cut back on spending to ensure a budget surplus, all you will really do is restrict the opportunities for further economic growth."The question then is whether you deliberately run a fiscal deficit in order to support the economy and to support employment," Dr Hail says. That level will differ from country to country, he says, depending on an individual nation's potential for growth.
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