Martin Wolf on the UK’s Sectoral Balances

In this video segment, Martin Wolf briefly illustrates the UK’s “severe sectoral imbalances” and the dangers of the current government’s budget policy:

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Below is what Wolf describes as his favourite chart (discussed at 48:40), which puts the UK’s public debt situation — the ostensible justification for the above-mentioned budget policy — in historical context: “the idea we were in a public debt crisis was a fantasy.”