In The Observer, William Keegan notes:

Faustian pacts are not a good idea. On assuming office in 2010 the coalition entered into a pact with the Bank of England and the financial markets which ranks as one of the most ill-conceived ventures in economic policy by any British government since the second world war.

It was to be deficit reduction – indeed the elimination of the so-called "structural" deficit – by 2015, in return for supportive monetary (including exchange rate) policy from the Bank of England and the enthusiastic backing of the financial markets.

The sine qua non as the criterion for success of this policy and pact was to be a marked improvement in the pace of economic recovery.

To read the whole article goto:

http://www.guardian.co.uk/business/2013/feb/24/osborne-reverse-gear-uk-recovery

William is the author of ''Saving The World''? Gordon Brown Reconsidered