Austerity cuts can only be part of the solution to restoring economic prosperity in the Western economy. That’s the view of the economic team at The Economist (disclosure: client) published in a special cover report this week on the world economy.
At first sight The Economist says that the recovery is in pretty decent shape. The IMF reckons that global GDP should expand by 4.8 per cent this year. But this statistics plasters over the chasm between the emerging and rich economies.
The Economist makes the case that long-term growth may depend on structural reforms as much as prudent macroeconomic policy. “Governments should think more coherently about how to support demand and boost supply,” it says.
There’s green shoots all around us at home in the Northumberland countryside. There can be no doubt that 
