Posted: 31 Jul 2013 04:00 AM PDT
In this episode, we focus on austerity economics and the role of central banks in times of financial crisis. The UK coalition government embarked on a programme of spending cuts when it came to power in 2010. Since then many economists and academics have argued that the intellectual justification for austerity has crumbled and it is a self-defeating strategy in bad economic times. Mark Blyth, Professor of Political Science at Brown University in the US, takes this view in his new book Austerity: The History of a Dangerous Idea. He discusses why he thinks austerity is merely a form of self-harm. We also hear from Claire Jones, economics reporter at the Financial Times about the role of central banks, particularly that of the Bank of England, in the age of austerity.LSE British Politicast Episode 2: Austerity Economics and Central Banking.