Where did all the stimulus go?

John Redwood suggested on his must-read blog yesterday afternoon that the Government should be asking itself that question: 

"Since 2005 the government has doubled central government borrowing (on its own understated figures ) from £469 billion to £922 billion – an injection of £452 billion.

"Since 2004-5 money supply (M4) has surged from £1,212 billion (£1.2tn) to £2,100bn (£2.1 tn) – it has also almost doubled. Notes and coin have gone up from £42 billion to £55 billion.

"And what has happened to real output? It is almost the same in Q4 2009 as it was in Q3 2005! No growth at all for 5 years."

Read the rest of his post here.

Jonathan Isaby