Advertisement

Under Treasury Rules 1956–1964

  • Alan Shipman
Chapter

Abstract

Joining a small number of Treasury economists in the middle of a crisis, as the government encounters balance-of-payments problems that force it to slow the economy so as to stabilise the pound, Godley learns the hard way about the ‘stop-go cycle’ that is already punctuating the UK’s post-war economic recovery. He absorbs the Treasury’s commitment to maintaining full employment with low inflation and enough investment to keep productivity rising, but is quickly made aware of the obstacles to attaining these simultaneously, without encountering a balance-of-payments constraint. The 1959 Radcliffe Report confirms the Treasury view that fiscal policy is the main instrument of economic management, with little contribution from monetary policy.

References

  1. Beveridge, W. (1944). Full Employment in a Free Society. London: Allen & Unwin.Google Scholar
  2. Brittan, S. (1964). The Treasury Under the Tories 1951–1964. London: Penguin.Google Scholar
  3. Cairncross, A. (1989). Introduction. In A. Cairncross (Ed.), The Robert Hall Diaries 1947–53. London: Unwin Hyman.Google Scholar
  4. Cairncross, A. (1996). Managing the British Economy in the 1960s. Basingstoke: Macmillan.CrossRefGoogle Scholar
  5. Cairncross, A., & Watts, N. (1989). The Economic Section: A Study in Economic Advising. London: Routledge.Google Scholar
  6. Dow, C. (1998). Major Recessions: Britain and the World, 1920–1995. Oxford: Oxford University Press.Google Scholar
  7. Fels, A. (1972). The British Prices and Incomes Board (Occasional Paper 29). Department of Applied Economics. Cambridge: Cambridge University Press.Google Scholar
  8. Gilmour, I. (1997). Whatever Happened to the Tories? The Conservatives Since 1945. London: Fourth Estate.Google Scholar
  9. Glynn, S., & Booth, A. (1996). Modern Britain: An Economic and Social History. London: Routledge.Google Scholar
  10. Godley, W. (1984). Confusion in economic theory and policy—Is there a way out? In J. Cornwall (Ed.), After Stagflation: Alternatives to Economic Decline. Oxford: Basil Blackwell.Google Scholar
  11. Holt, R. (2001). Second Amongst Equals: Chancellors of the Exchequer and the British Economy. London: Profile.Google Scholar
  12. Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. London: Macmillan.Google Scholar
  13. MacDougall, D. (1987). Don and Mandarin: Memoirs of an Economist. London: John Murray.Google Scholar
  14. Newton, S., & Porter, D. (1988). Modernization Frustrated: The Politics of Industrial Decline in Britain Since 1900. London: Unwin Hyman.Google Scholar
  15. Parkinson, C. (1958). Parkinson’s Law. London: John Murray.Google Scholar
  16. Peden, G. C. (1988). Keynes, the Treasury and British Economic Policy. Basingstoke: Macmillan Education.Google Scholar
  17. Phillips, A. W. (1958). The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861–1957. Economica, 25(100), 283–299.Google Scholar
  18. Philo, G. (1995). Television, politics and the new right. In G. Philo (Ed.), Glasgow Media Group Reader, Volume 2: Industry, Economy, War and Politics. London: Routledge.Google Scholar
  19. Wadsworth, J. E. (Ed.). (1973). The Banks and the Monetary System in the UK 1959–1971. London: Methuen.Google Scholar
  20. Ward, W., & Doggett, T. (1991). Keeping Score: The First Fifty Years of the Central Statistical Office. London: HMSO.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Alan Shipman
    • 1
  1. 1.Department of EconomicsThe Open UniversityMilton KeynesUK

Personalised recommendations