Emeritus Prof Christopher May's Post

@iivariArttu

Well, a Keynsian approach would see the need to dampen down some over-heating, certainly.... where that might be for the UK is an interesting point; one might argue that any growth over round 1.5% GDP a year was over-heating relatively.

But whenever it was, already you can see the possible use if interest rate policy to reign in over-heating - albeit with less justification the BoE has been doing that for the last 18 months, separate from austerity - Govt. does have other levers