Inflation and Debt Fears Point to a Nervous Recovery
Monday, January 18, 2010 7:54Posted in category News
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After the terror of the crisis comes a nervous recovery. That is the message delivered in the views of economists and policymakers on the risks to the economy as the UK exits recession.
By far the biggest fears keeping analysts awake at night are a sovereign debt crisis, in the UK or internationally, and inflation.
Of the 79 respondents to the FT’s survey, 27 were worried that a failure to sufficiently tighten public spending or raise taxes could leave the country facing much higher costs from servicing the national debt, or even the possibility that investors will stop lending to the UK.
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