Outrageous Prediction 1: UK nominal growth doubles to 8%A massive MMT-inspired fiscal blast boosts the FTSE 15% better than its continental peers in 2020.
Life has not been a long quiet river for the United Kingdom since the 2016 referendum. At the snap elections of December 12, Prime Minister Boris Johnson wins an overwhelming victory against a divided Labour party over the Brexit issue.
The economy is also penalised by five consecutive quarters of contraction in private investment, a low UK household saving rate, slowing domestic demand and very weak construction and manufacturing sectors. On top of that, there is a growing discontent among the population, particularly among Brexiters, regarding the rise in gross inequalities in the country. In an unprecedented turnaround for the Conservative Party, the government decides to embark on a MMT-based economic policy aimed to restore confidence, stimulate GDP growth and attract investment.
This is the largest fiscal stimulus program in the UK since the end of World War II. It leads to a massive increase in public spending in infrastructure, the health system, education and the implementation of ambitious programs
to support the housing market and provide financial assistance to the most disadvantaged populations. As a result, the public deficit yawns wider to over 6% of GDP
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