IFS say Labour’s policy would mean higher interest rates

From the start of the financial crisis, the Conservatives have argued that when a country¹s finances are in a mess, the best way to manage demand is through monetary activism and fiscal responsibility.

Going into this crisis, Britain¹s finances were indeed in a mess. We had the biggest structural deficit among major developed economies (according to the IMF, OECD, oh, and Alistair Darling).