Are Surpluses Normal?

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England’s Chan­cel­lor George Osborne took the Con­ser­v­a­tive Party’s claim to fis­cal respon­si­bil­i­ty one step high­er last week when he announced that they will enact a law which will require British gov­ern­ments to run sur­plus­es “in nor­mal times”:

in nor­mal times, gov­ern­ments of the left as well as the right should run a bud­get sur­plus to bear down on debt and pre­pare for an uncer­tain future.” (“Man­sion House 2015: Speech by the Chan­cel­lor of the Exche­quer”)

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About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.