Britain's economic renaissance: Margaret Thatcher's reforms, 1979-1984
As the recession in Britain intensified in 1980/81, Margaret Thatcher, despite the dictates of contemporary economic doctrine, did not increase the fiscal deficit in order to "increase aggregate demand". Instead, she did just the opposite, hoping to restore confidence to the market and credibility to government policy. In this analysis of her policy, the Prime Minister's personal economic advisor, the First Lord of the Treasury, argues that the course of Britain's recovery since mid-1981 is evidence of the success of Thatcher's policy. In non-technical language he explains how this policy worked to bring about a steady decline in the fiscal deficit and monetary aggregate and how, within this stable financial framework, output grew steadily, productivity advanced rapidly, and inflation was reduced to 5%. Finally, the book reviews the effects Thatcher's policies have had on international trade, on employment, and on industrial management and relations.
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
aggregate demand appreciation of sterling argued average Bank Bank of England billion Britain budget Buiter and Miller capital Chancellor confidence countercyclical crowding debt Economic economists effect European evidence exchange rate exchange-rate target expansion expansionary expected expenditure exports financial deficit fiscal multipliers fiscal policy fiscalists forecast Germany government spending important income increase industries inflation inflationary Institute Economic Keynesian labor Labour government long-run manufactures Marcus Miller measures ment models Modigliani and Ando monetarists monetary aggregates monetary base monetary conditions monetary policy monetary squeeze money supply MTFS nominal OECD Patrick Minford percent of GDP percentage points period private sector productivity proposition PSBR public sector public spending rate of growth rate of inflation real wages recession reducing stability statistics sterling M3 structural deficit substantial Thatcher government tion trade Treasury unem unemployment United Kingdom velocity