A possibility? The end of the reduced rate of VAT (perhaps followed by an increase above the previous 17.5% level), a curtailing of public spend, rampant inflation triggered by quantitative easing, rising levels of unemployment, increasing tax take, a failure to sell government debt, looming energy crisis … these things and more could simply tip the economy into an even greater mess. But I fail to see anyone in government anticipating a double-dip, or a sustained trough.
As I’ve said before, the medicine of previous months could kill the patient. Unfortunately we cannot live alternative histories to see how a different strategy would have worked.
Tags: double-dip recession
