With time, it could help a country hit by a recession that it could not tackle alone, even if its public finances were in order. Look at Ireland, which in 2008 was hit by a severe financial crisis, followed by a recession, despite having a sound budget. It was not able to manage on its own.
The Treasury announced last week that the deficit this year will be 4.2 percent of GDP. We’re at full employment now, and that’s a large deficit to have in this situation.