The IMF has argued Britain could afford to raise its debt by 50% of GDP without triggering a crisis.
That might be perhaps just a little lenient, but let\’s run with that shall we?
So, our current budget deficit, that is, the amount we add to the national debt each year, is some 10% of GDP.
This means that we can continue on the current budget trajectory for a maximum of five years.
Now, from what I remember of the various speechifying, the current government says that it\’s trying to get that deficit under control in four years.
I\’m not hugely convinced that leaving a 12 month gap before \”crisis\” is being overly harsh really. Sounds like a reasonable sort of buffer actually.
Maybe, even, that the current government\’s actions are informed by that IMF statement?