Chestaan wrote:Running a surplus isn't a bad idea, but it should be done when the economy is doing well. Sure, you can try running austerity measures during a recession/stagnation but it's kind of like closing the stable door after the horse has bolted. A surplus should have been ran before the recession and then that money could have been used to deal with the crisis that started in 2008. It's also very hard to run a surplus during a recession as government revenues naturally fall (unemployment, lower VAT etc) while spending naturally rises as welfare must increase etc.
My thinking would to be continue to run a modest deficit until the economy begins to pick up. Then when growth returns and revenue increases, you can run a surplus and start paying for the deficit and saving for a rainy day.
I completely agree, but the UK is out of reccession. I want arguing for it in Greece's case.

