How do we kick start the recovery?

‘So what do you do?’

‘I’m an economist / economics teacher / student of economics (delete as applicable)’

‘So what should we do to get us out of this mess?’

..............

I wonder how many times a conversation like this (or vaguely similar) has taken place over the past year; I know I’ve experienced it.

Laurence Knight’s report on the BBC website makes for a great article to kick start a discussion on some potential answers. The five options he raises, each with brief subsequent analysis, are:

1) Printing Money
2) Stoking Inflation
3) Cutting red tape
4) Cutting taxes
5) Borrowing and spending

Those studying macroeconomics may well find it useful to consider the potential merits and problems that may arise from each solution prior to reading the article – see if you can consider what the BBC Business reporter has to say about each choice.