Confidence is key to economic recovery

Paul Ormerod appears on BBC Newsnight

Paul Ormerod appeared on BBC Newsnight to discuss austerity and George Osborne's economic plans.

Mr Ormerod stated that there are historical examples of when austerity has worked. For example, in the UK during a deep recession in the early 1980s, 364 economists called on the government to reverse austerity policy. The government ignored this and the UK experienced a strong economic recovery. Mr Ormerod went on to argue that economic recovery is all to do with psychology such as business confidence and "spontaneous optimism". This should be the main concern of government policy.

Watch the full programme here. Segment begins at 24.39.