Pimco chief slams austerity in interview with FT

Bill Gross, manager of the world’s largest bond fund for Pimco and one of the most widely followed and influential voices in the bond market, has attacked the UK's and Eurozone's austerity measures, saying that austerity is not the way to induce growth.

Bill Gross, manager of the world’s largest bond fund for Pimco and one of the most widely followed and influential voices in the bond market, has attacked the UK’s and Eurozone’s austerity measures, saying that austerity is not the way to induce growth.

In an interview with the Financial Times (£), Gross said the UK and Europe had “erred” in believing that austerity “is the way to produce growth”.

“It is not. “You’ve got to spend money.”

He added that: “In the long term it is important to be fiscal and austere. It is important to have a relatively average or low rate of debt to GDP. The question in terms of the long term and the short term is how quickly to do it.”

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