Under Treasury Rules 1956–1964

  • Alan Shipman


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.


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Copyright information

© The Author(s) 2019

Authors and Affiliations

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

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