Are we entering a new golden age of economic growth?

Abstract

Andrew Sentance presents an upbeat assessment of UK medium‐term growth potential. He argues that the economy can sustain a lower average level of unemployment than we have become accustomed to, without inflation. As a result, he argues that the UK economy can grow faster over the next ten years than recent trends or long‐term performance suggest. A return to the growth rates of the “golden era” of the 1950s and 1960s is not out of the question. The key to this scenario is not a dash for growth, but steady management of the economy coupled with measures to raise educational standards, speed the introduction of new technology and improve the functioning of the labour market.