15
Jun
UK's economy 'the best in Europe'
The UK is in the best shape out of all the economies in Europe,
according to a leading economist.
Paul Krugman, who won the 2008 Nobel prize for economics, said
that the UK's economic policies had been 'pretty good' and called
them 'intelligent'.
The government also deserved more credit for its policies, he
said in an interview with the Observer newspaper.
His comments come at the end of a week when the pound has risen
to its highest level this year.
But Professor Krugman believes the earlier fall in the value of
sterling may have helped the UK.
"The UK has achieved a lot of monetary traction in the way that
no one else has through the depreciation of the pound. In effect,
you've carried out a successful beggar-my-neighbour devaluation,"
he said.
"I think the UK economy looks the best in Europe at the
moment."
The government's policies had managed to stabilise the banking
system, he said.
He added: "If the government can hold off having an election
until next year, Labour might well be able to run as 'we're the
people who brought Britain out of the slump'."
SOURCE: bbc.co.uk/news 15th June 2009