Economic Policies Flashcards
What was a common conception about Britain in 1964
They were lagging behind many other countries such as west Germany and Japan
What was Britain considered to be lagging behind
Stop-go policies
What were the issues of stop-go policies
Would lead to periods of inflation rob off the pound and bad balance of payments
What was an economic problem the labour government inherited
£800 million deficit
What was Britains GDP growth like from 1950-1973 compared to other nations
Britain- 3%
West Germany- 6%
Japan-9%
What did Wilson establish to try and stop stop-go policies
DEA- department of economic affairs 1964
Who was in charge of the DEA
George brown
What did the DEA do
Devised national system of ‘planning councils’
Tried to establish voluntary agreements about wages and prices with industrialists Union leaders and civil servants
Why did the DEA fail
Didn’t have united government support
In competition with Roy Jenkins and other orthodox economists in the treasury
When was the DEA abandoned
1967
What replaced the DEA
Prices and incomes policy
What did the prices and income policy do
Set limits on price rises and to call for wage restraint in negotiations between unions and employers
What partly caused the Sterling crisis in 1966
The seamen strike
What happened in 1967
Balance of payments crisis
What caused the balance of payment crisis in 1967
War in the Middle East affected oil supplies
Dockers strike in 1967
