There can likely be no repeat of the 2008 bailouts, sovereign states do not have the capacity. But the accumulating debt is now so large, the point of no return may have been breached. Euro collapse could trigger far wider meltdowns.
The deficit is the consequence, not the cause, of Britain's financial problems. Reducing it would require big increases in spending from corporates and consumers. Could the trade balance component be the easiest route out of austerity?
Unlike any other developed nation the UK has sold off considerable amounts of its major industries and assets to overseas owners. This has weakened democratic control of industry, inflated our exchange rate and seriously undermined our manufacturing base. Here's why.
John Mills and Norman Tebbit discuss Britain's approach to manufacturing, home-grown industry, foreign ownership of assets, the exchange rate, and re-examine the choices of former governments and how they have affected Britain's economy today.
It is not just Britain's balance of trade that would be aided by a substantial devaluation but also inequality and the host of ills it brings with it. John Mills explains why in this second round of articles from the debate Devalue or Else.
In this thoughtful reply to Robert Skideslky, John Mills examines the UK's trade performance post-crash and argues that, though requiring a more rounded industrial policy as a whole, any measures taken without further devaluation will fail to turn the economy around.
Reproduced with thanks to Civitas, in this 2012 pamphlet John Mills sets out the case for devaluation as the best means of returning the British economy to balance and prosperity. It is published here in full, except for tables and footnotes, as part of OurKingdom's new series - Devalue or Else!
The exchange rate is the most important single price in the economy: it determines the price of goods for export and the real value of foreign-owned debt. The UK needs a more competitive external sector and can achieve it by much greater quantitative easing