Case Study Analysis and Solutions

Case ID: 715008

Abstract:
Case Solution & Analysis for The United Kingdom and the Means to Prosperity by Laura Alfaro, Lakshmi Iyer, Hilary White
After struggling through the country's longest recession since 2008, the U.K. was expected to grow faster than any other G7 nation in 2014. Analysts wondered whether the return to growth was because, or in spite of, Prime Minister David Cameron's controversial £113 billion austerity plan introduced in 2010. Despite the positive upturn in the economy, U.K. policymakers still faced challenges with rapidly rising income inequality, an economy dominated by the financial sector, a possible housing bubble, and an approaching referendum on Scotland's independence. Moreover, many claimed the U.K. was at risk of secular stagnation, a slowdown in economic growth caused by a structural deficiency in demand. What could the government do to put the country on a sustained and balanced growth trajectory?

Keywords:
Business cycles, Deflation, Economic growth, Economics, Financial crisis, Government, Inflation, Macroeconomics, Monetary policy, Politics, Welfare state, The United Kingdom and the Means to Prosperity Case Solution

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