I cut my teeth in financial services in the early '70s, which means that I was weaned on a diet of inflation, recessions and rising unemployment.
During that period, inadequate, inappropriate fiscal policy led to the world's fourth biggest economy going cap in hand to the IMF and suffering the ignominy of being told that any borrowing facility will be subject to cuts in public spending. UK public sector net debt, as a percentage of GDP, reached a peak of 53.8% (75/76) in this period. Once overseas, and UK investors, lose confidence in a country, its bond market is punished and in 1972, 1973 and 1974 UK gilts fell by -12.3%, -18.6% and -27.5% respectively. Over these three years, gilt prices declined by a total of 48% in notiona...
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