Economic Developments: Initial impacts of Monetarism

Question 1

What would it mean if the government introduced Monetarism?

Answer 1

They would reduce public spending and raise interest rates

Question 2

Why was there a Public Sector Borrowing Requirements deficit consistently for decades within Britain?

Answer 2

Because the government had always borrowed more money than what was available to spend on the public sector

Question 3

How would Thatchers government reduce the PSBR deficit?

Answer 3

They would stop borrowing as much money to keep the public sector running

Question 4

If Thatchers government would start to use less money to support public industries, what did this indicate that they would do?

Answer 4

Sell off public industries to the private sector

Question 5

What was inflation at in 1979?

Answer 5

19%

Question 6

What was inflation at by 1983?

Answer 6

5%

Question 7

What did Monetarism help with?

Answer 7

Reducing inflation

Question 8

What did Monetarism not help with?

Answer 8

Unempliyment

Question 9

What were the figures for unemployment at some points in the 1980s?

Answer 9

Over 3 million people unemployed