As according to martinez diaz 2009 during the

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As according to Martinez-Diaz, (2009) during the recession in 2008 there was a marginal increase in the use of fiscal policy for expansion. They did this by temporarily introducing a cut in VAT, meaning prices were cheaper allowing an increase in consumer expenditure, therefore increasing GDP as more capital is being pumped into the economy. Another method used by the UK is the maintenance of monetary policy. Within the UK it is controlled by the Bank of England, in which their role is to increase or decrease interest rates if inflation predictions rise or fall. This is done to prevent the economy from expanding too fast, as a rapid expansion could cause another recession further down the line.When looking at the data it can be seen that both countries see a substantial decline in GDP in 2009, therefore suggesting that they were both affected by the financial crisis in 2008, in which according to Thanaset and Kai-Hong (2014) was because of the constant bad credit of homeowners, this caused the availability of capital to fall forcing banks to close, as well as a lot of the financial markets around the world and eventually led to the global crisis. As after the huge financial crisis there was a time for all counties to expand in which both countries had their own methods Economist.com, (2013). In the UK, the governments felt the need to intervene in the banking
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