Would Labour be Better?

The Prime Minister was answering a question on the Government's economic record when he lashed out.
He said: "What we need to do both in Britain and Europe is to combine deficit reduction, which has given us the low interest rates, with an active monetary policy, with structural reforms to make us competitive, and with innovative ways of using our hard-won credibility, which we wouldn't have if we listened to the muttering idiot sitting opposite me.
The IMF said that further easing of monetary policy, by printing money or even cutting the 0.5% base interest rate, was "required" now to inject some vigour into a flat economy. And it said the Government should consider an immediate increase in spending on infrastructure to boost growth and employment.
But it warned of the "large" risk of an escalation in the eurozone crisis, which would deliver a "substantial contractionary shock" to the UK economy.
While reducing Britain's deficit over the medium term remains essential, a shock in the eurozone - such as the exit of Greece from the single currency - would force the Government to consider delaying plans to balance the books beyond the current target of 2017 and implement short-term measures to shore up growth, said the IMF in an annual report on the state of the UK economy.
"If the economy turns out to be significantly weaker than forecast, fiscal easing should be considered," said IMF managing director Christine Lagarde. "Measures should be focused on supporting growth and employment."
The report came as the Organisation for Economic Co-operation and Development (OECD) warned the eurozone was close to "a severe recession" which would have knock-on effects on the rest of the world.
Chancellor George Osborne warned that the eurozone was reaching "a critical point" and confirmed that Britain was preparing to deal with the consequences of a failure in the single currency.
Ms Lagarde acknowledged the "substantial progress" Britain has made towards achieving a more sustainable budget thanks to the coalition Government's austerity measures and the Bank of England's "nimble" use of quantitative easing and interest rate cuts. This had given Britain a "hard-won credibility" with international markets which now allows ministers the scope to take measures to support growth, she said.
But she warned that the UK economy had under-performed and unemployment remained "much too high". Growth is expected to pick up in the latter half of this year, but much productive capacity could "remain idle for a protracted period". She said: "Policies to bolster demand before low growth becomes entrenched are needed."
The IMF's assessment, drawn up after a two-week mission to the country by a team of seven economists, found that "further monetary easing is required" now. The Bank should consider another round of QE and "reassess the efficacy" of cutting the base rate below its current historic low, it said.