Lord Keynes must be rolling in his grave as the U.K. takes a page out of Ronald Reagan's economic recovery book.  An emergency budget has been introduced that leans mostly on spending cuts to reduce the deficit.  Bloomberg reports that some economists see the spending cuts as spurring growth.    Governments have proven they can spur expansion by focusing their belt-tightening on spending cuts rather than tax increases, according to studies by Harvard University professor Alberto Alesina and Goldman Sachs Group Inc. economists Kevin Daly and Ben Broadbent. “There have been mountains of evidence in which cutting government spending has been associated with increases in growth, but people still don’t quite get it,” Alesina said in an interview. He made a presentation to European finance chiefs on the topic during their April meeting in Madrid. Such a strategy in the past has also “resulted in significant bond and ...(Read Full Post)