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Public Sector Finances and the Crisis

Michael P Devereux, Clemens Fuest and Giorgia Maffini, of the Oxford University Centre for Business Taxation, consider some solutions for the restraint of the nation's public finances

 
Michael P Devereux Clemens Fuest and Giorgia Maffini of the Oxford University Centre for Business Taxation consider some solutions for the restraint of the nation's public finances
 
The financial crisis and the resulting strong economic contraction have significantly deteriorated the UK national fiscal position. With a deficit over 12% of GDP in 2009 the United Kingdom has one of the highest deficits among the EU(15) members (Figure 1).
Figure 1: Public sector deficit 2009 (% of GDP)
 
 
The reason why the UK deficit...

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