Public sector borrowing remains stubbornly high, and is forecast by the government's Office for Budget Responsibility to be 120 billion pounds for 2013.

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That was ruled by the Treasury as falling outside the public sector borrowing requirement because it claimed the risk of default was so small.

ECONOMIST: The London Underground

When the boom period of credit expansion is coupled with growth in public sector borrowing, however, the subsequent negative impact on the economy will be worse.

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