The British Economy in 1980: A Standard View

Abstract

This chapter describes the view of the economy in 1980 which we have taken as a ‘standard’ or benchmark for comparison with alternatives. This projection is described in some detail with the recognition that it is only one of a range of possible outcomes; discussion of the uncertainties surrounding this standard is postponed to the following chapters where we examine the consequences of different assumptions. Any projection is conditional upon a particular set of assumptions all of which contribute to the results. Some of the assumptions have been discussed already — for example those relating to the labour supply are given in Chapter 8 — but they need to be brought together so that the overall picture can be shown. The same applies to the results — many of these have also been presented earlier — so that this chapter has the task of showing them in relation to one another in their historical perspective.