Economic Crisis - Assignment Example
However, in order to achieve a sustained level of increase in the aggregate output level, it is important that the government must take efforts which can stabilize the economy. Over the period of time, the overall quantum and level of public debt have increased to a greater length within the UK. Higher public debt levels along with extra reliance on credit by the private sector have resulted in significant economic problems for the UK as an economy. (BBC.co.uk , 2011)
This economic situation of UK, therefore, required a rebalancing of an economy with the reconsideration of both the fiscal as well as monetary policies adopted by the current government of David Cameron. The changes in the fiscal policies of the government were aimed at improving the public finances in medium-term whereas changes brought in within monetary policy framework were aimed to disciplining the financial sector to play an active and positive role for the overall growth of the economy.
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