Larry Summers Calls The UK's Cuts For Growth Strategy "Oxymoronic"

Lawrence Summers

Larry Summers has lashed out at the United Kingdom’s growth strategy, calling its plans to cut the deficit to grow the economy “oxymoronic,” according to the Telegraph.

“I find the idea of expansionary fiscal contraction in the context of the world in which we now live to be every bit as oxymoronic as it sounds,” Summers said at Soros’ INET conference.

This comment comes on the heels of recent data that suggests the UK is entering a period of economic stagflation, where growth is weak and inflation is high.

Recent retail sales data shows the country’s consumers being crushed by the rising cost of gas.

Don’t miss: The 8 shocks slamming the global economy >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.