With the economy stagnating, this is the very worst time to depress demand in order to be seen to ‘balance the books’Alas! Were it not for the fact that he was cremated, the great economist John Maynard Keynes would have been turning in his grave at the way the economics of last week’s spring budget – sorry, spring statement – were greeted by most of the media.Of course, the principal culprit was the chancellor of the exchequer, Rachel Reeves. By tying herself to the mast of self-imposed fiscal rules, she managed to ensure that much of the commentary was about how she might have to raise taxes later this year, when the constraints of the fiscal straitjacket might force her to. Continue reading...