Niall Ferguson-Historian and author

Reduce the national debt

There is usually a budget deficit in the country's economy,and UK is not the exception.UK has high economic growth ,but that doesn't mean that UK has a budget surplus.UK imports a lot form many countries such as China,or imports high technology products such as Japan.So the Organisation for Economics Co-operation and Development estimates that the UK national deficit will rise to 14 percent in 2010-the highest in the Western World.

Therefore as you can see how big is the debt for British economy.In longterm,this will cause many other problems.Furguson argues that the scale of this debt burden will cause interest rate on government bonds to rise,making long-term inflation likely.

So probably,Ferguson's way is quite reasonable for the situation like this.But the problem with this is the government will reduce their spendings and may raise taxes.It could be a direct tax or indirect,which will not be beneficial for people and this may lead to inflation as well.Because,with high tax,people will claim for higher wages.So the labour cost has increased and this may increase the price of all products.

Also,the government will reduce their spendings on national health service and education,or in infrastructure investment.Furthermore, ceteris paribus,the aggregate demand will reduce