Economic Developments: The Impact of Lawson's "Boom" Budgets Flashcards
When did Lawson make his 2 “Boom” Budgets?
1987 and 1988
Why did Lawon create Boom Budgets in terms of inflation in 1986?
Inflation in 1986 was at 3%
Why did Lawson create Boom Budgets in terms of economic growth?
In order to create more economic growth
What was the impact on inflation of his boom budgets?
It rose
How much did inflation increase on average a year from 1987 to 1990?
2% a year
Why did Lawson believe Britain should join the ERM?
To help reduce inflation
What did the government have to do as a response to inflation in 1990?
Raise interest rates
What were interest rates up to by 1990?
10%
What was the consequence of high interest rates after high inflation?
A recession
When did the 1990s recession last from?
1990 to 1992
What was economic growth at a year in the late 1980s?
4% a year
What was the BoP deficit in 1989?
£13.6 billion
What was the BoP deficit in 1990?
£16 billion
