Economic Developments: Financial Deregulation Flashcards
What was Financial Deregulation?
The government removing their controls over the financial sector of the country
What did Financial Deregulation do to the London Stock Market?
It made it available to everyone
Who was the London Stock Market only available to before Financial Deregulation?
Wealthy and Well-connected individuals
When did financial deregulation of the London Stock Market occur?
October 1986
What group of people emerged from the financial deregulation of the London Stock Market?
The ‘Yuppies’
What was ‘Yuppie’ short for?
Young Urban Professional
What had financial deregulation encouraged banks to do?
Give their customers larger loans
Why did financial deregulation encourage banks to give their customers larger loans?
Because it would be more likely that they could pay larger loans back
What did most people use the larger bank loans for under financial deregulation?
Foreign consumer goods
What was the impact of most of the larger bank loans being spent on foreign consumer goods?
The Balance of Payments Deficit increased
What was the Balance of Payments Deficit in 1980?
£16 billion
What was the Balance of Payments Deficit in 1989?
£46 billion
What event was created when the London Stock Market was deregulated?
The ‘Big Bang’
