Friday 7 December 2012

What does the budget deficit really look like?

An interesting graph that I noticed on Paul Krugmans blog:



As can be seen - the graph segments the deficit across a range of different factors. I wonder what it would look like if you did a similar analysis for the UK and included
  • Cyclical effects due to the downturn, 
  • Tax revenue changes due to taxation changes (eg. corporation tax changes)
  • Lower tax revenues/increased welfare spending due to government economic policy
  • The structural deficit 


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