Joan Robinson, the great economist, once wrote: ‘The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.’
British politics in recent months has all been about ‘the fiscal hole’, said to be a gigantic £55bn gap in the government’s finances. Journalists and politicians talk about it as though it is a real thing.
It is not.
The ‘fiscal hole’ sounds like it’s a £55bn gap…