Lloyd George’s war loan is due to be paid off on Monday. If only those currently in charge of the national finances could think so far aheadPolicymakers in Britain and the eurozone should take note of an interesting event due to take place on Monday. The British government will finally redeem the war loan taken out in 1917 under the premiership of Lloyd George. That is to say, the last traces of that first world war debt will be repaid almost 100 years later.With debt, and deficits, one has to take the long-term view. This applied to the situation facing the coalition in 2010, and to the policymakers of the eurozone, who were also faced with the financial consequences of the 2007-09 banking crisis. The impact of the crisis was the peacetime equivalent of the devastation wreaked on public sector finances by war itself. Unfortunately, both in this country and the eurozone, an absurdly short-term view was taken of the situation, not least with regard to Greece and other peripheral eurozone economies.Unfortunately, both in this country and the eurozone, an absurdly short-term view was taken of the situation Continue reading...
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