Chapter

Introduction: the scope and challenges of the financial crisis

Joanna Richardson and Colin Copus

in From recession to renewal

Published by Policy Press

Published in print November 2010 | ISBN: 9781847427007
Published online March 2012 | e-ISBN: 9781447302377 | DOI: http://dx.doi.org/10.1332/policypress/9781847427007.003.0001
Introduction: the scope and challenges of the financial crisis

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This chapter provides a context for the financial crisis, with in-depth political and economic insight into the events leading up to the recession and analyses of lessons that can be learnt. It gives an overview of the financial crisis and introduces some of the key themes emerging in the impact on the public sector. The current financial crisis in Britain began with a severe credit crunch in 2007, but had its roots in wider themes and issues, and is linked with historic, economic, and political decisions. It began with a predominant discourse of private debts – mostly in the banking sector. There are three key responses that a government can take to a financial crisis: ‘print’ money through a programme of quantitative easing; cut public spending; and raise income tax.

Keywords: financial crisis; public sector; Britain; banking; private debt; income tax

Chapter.  8950 words.  Illustrated.

Subjects: Economic Sociology

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