Political Developments: Monetarism Flashcards
What economic policy did Thatcher introduce to Britain?
Monetarism
Why was introducing Monetarism controversial?
The military dictatorship of Chile was the only other country using Monetarism
What 2 things did Monetairsm limit?
Limit public money supply and limit government spending
How would public money supply be limited?
By increasing interest rates
What was the goal of Monetarism?
To reduce inflation
What was a negative impact of Monetarism 1 year after it was implemented?
Inflation had doubled
How many people were unemployed around a year after Monetarism was introduced?
2.8 million
What was significant about the amount of people unemployed by the early 1980s?
It was the time where the most people had been unemployed since WWII
What did Thatcher refuse to do despite the initial negative impacts of Monetarism?
A U-Turn
