Deregulation Flashcards
why did Thatcher put this in place (what did she believe about government control on the economy)?
Thatcher believed government control of the economy stifled innovation and competition.
What was removed in October 1979 and how did this help to solve previous issues and benefit British economy?
In October 1979 there was the removal of exchange control.
Before this there was a limit to how many pounds people could convert into foreign currency.
This helped fuel greater overseas investment returning profits to Britain.
What was included in the Financial Services Act of 1986?
The Financial Services Act 1986 deregulated the London stock market in the ‘Big Bang’ of October 1986.
How did the Financial Services Act 1986 benefit the City of London; what did it end?
His revitalised the City of London’s money market by ending the Stock Exchange’s monopoly on share dealing.
What did the Financial Services Act of 1986 give easier access to?
mortgages.
what was there a huge increase in spending on?
foreign goods and investments
what did deregulation drain, and what did this lead to?
The huge increase in spending on foreign goods and investments drained wealth from Britain, which led to under investment and bankrupted industries in Britain.
Who did the Financial Services Act 1986 benefit, and who did it not?
Benefited the high-earning financial sector in London,
Not the struggling areas of industry & mining in South Wales, central Scotland and North of England
What did the Financial Serviced Act partly contribute to?
The stock market crash in 1987 which wiped 24% off stock market prices.
What did the Financial Services Act allow people to do?
Make a lot of money in an unsustainable and illegal fashion leading to 2008 financial crisis.
The Financial Services Act led to a rise in household debt from 1980 to 1989 but by how much?
It led to a rise in household debt from £16 billion in 1980 to £47 billion in 1989.
What did the easier access to mortgages increase by 1990?
Easier access to mortgages increased debt from £43 billion to £235 billion by 1990.
How much did personal debt reach by 2003?
Personal debt reached £1.3 trillion by 2003.
