Macroeconomics: UK economy, IB Economics

This was last night's big story - the IMF warning the current government that cutting taxes in the next Budget might be unsustainable and require higher levels of borrowing or spending cuts. It was the latter that the Chief Economist, Olivier Blanchard, was concerned about. 

Unsurprisingly, the Chancellor rejected the IMF's call arguing that a growing economy would permit tax cuts and that, indeed, tax cuts would boost growth, a virtuous cycle. However, the IMF are of the view that there are areas where the government might look to reform taxation - carbon, property and wealth taxes are all things that might be updated.