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...If Debt/GDP is about 1 now (UK-US levels) you can run a primary deficit of (g-r) — where g is growth rate and r is real cost of borrowing — and keep Debt/GDP constant....
...As a former investment banker, Augar tells the story of the disaster in the financial markets. What really happened at Northern Rock, Royal Bank of Scotland et al? This gives you a clearer idea....
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