IMF Economist Warns Against UK Tax Cuts

The euro began in 1999 when 11 European members agreed to keep exchange rates fixed and to hand over monetary policy to the European Central Bank. The euro then became the actual currency in 2002. The euro worked well for the first 10 years or so, and the European Union believed that it was part of the solution for economic success. However, the euro sailed on with an incomplete constitution, and there were issues of unclear consequences, the possibility of no safe asset, and no centralized European budget. The IMF chief economist Pierre-Olivier Gourinchas has been a persistent critic of the British economy, suggesting that tax cuts should not be implemented, and that Britain cannot afford them.