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Planning, Tax Reform and Structural Change

  • Alan Shipman
Chapter

Abstract

Godley’s forecasting skills rescue him from a threatened shake-out of Treasury economists when Labour appoints outside economic advisers on regaining office in 1964 and transfers longer-term responsibilities from the Treasury to the new Department of Economic Affairs. When its government launches a National Plan with bold targets for growth-rate improvement after 1964, Godley is drawn into new tax design and other initiatives designed to promote manufacturing industry, which Kaldor’s work has highlighted as essential for driving productivity growth and containing the trade deficit which has undermined previous accelerations. However, his refinement of Kaldor’s work strongly suggests that National Plan growth targets are unattainable, without improbable rates of investment and employment growth. Having decided against devaluation in 1964, new balance-of-payments problems make it inevitable by 1967, and Godley is commissioned to calculate how far the pound should fall.

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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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