Political Economy Reborn: The Age of the Maggie
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In June 1979, Margaret Thatcher and her newly elected Government embarked upon a bold and novel macroeconomic policy. In doing so, she broke with the postwar consensus relating to the conduct of macroeconomic policy, namely that it was the role of government to stabilise the economy and ensure ‘full employment’ whichever way defined. The stated aim of her government was to reduce inflation and to create the conditions for sustainable growth in employment and output. At no time did she state that it was the role of government to stabilise the economy. Rather, the role of government was to provide the framework and the conditions, but it was up to the private sector through the market mechanism to create wealth and jobs.
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