With the Bank of England Governor Mervyn King speaking his mind on the government’s direction to introduce new fiscal stimulus plans to boost the economy, British Prime Minister Gordon Brown responded seemingly in the defensive.  King gave a statement on Tuesday, March 24, 2009 that the government should not give out any more fiscal stimulus since there is a growing budget deficit. 

According to Brown’s spokesman, the fiscal stimulus is only one of the strategies the government is going to use to fight the economic crisis.  Brown will be discussing with the G20 summit world leaders next week other economic measures that they can adopt.  This includes the creation and implementation of fiscal policies and government intervention in the financial markets.

Brown’s spokesman explained that the government intervention in the financial markets will assist on the lending from and between financial institutions and putting in a method for protecting assets.  The protection scheme will be the insurance of the government on the bad assets.

Still speaking for Brown, he said that each government will decide on its own what is appropriate for each of their own economies.  He ensures that the UK government is doing everything it can to rise up to the challenges UK businesses now have to contend with.

He also went on to assure the public that there is no rift between the Bank of England and the Prime Minister despite the obvious difference in opinions.

Brown is currently making his rounds in New York, then to Brazil and Chile before the G20 Summit and making headway in supporting US President Barack Obama’s plan in introducing more fiscal stimulus measures to fight the global economic crisis.