Thatcher's economic policies- monetarism

Question 1

what was monetarism 1980-82

Answer 1

• when thatcher came to power in 1979 she introduced a new set of economic priorities and economic policies which will be a complete departure from the economic consensus that existed after WW2

Question 2

what was Thatcher’s economic priority

Answer 2

• For Thatcher the economic priority was controlling inflation

Question 3

How was this a break from previous government’s Economic priority ?

Answer 3

-This was a significant break with the past , as previous governments had prioritised keeping unemployment low, and were therefore willing to allow inflation rise in order to preserve jobs

Question 4

Who was Geoffrey Howe

Answer 4

• Thatcher’s first chancellor of Exchequer

Question 5

what did he set out

Answer 5

• set out a plan to control inflation in the medium term financial stratergy, which accompanied his 1980 budget .

Question 6

what did the document set out

Answer 6

• the document set out targets from reducing the amount of money in circulation in order to control inflation

Question 7

Therfore what did thatcher do and who was she inspired by

Answer 7

• inspired by economist Milton Friedman, Thatcher adopted a moniterist policy designed to measure and reduce the amount of money in the economy in order to reduce inflation

Question 8

what was the aim of her budget

Answer 8

• the aim of her budget from 1979-82 was to drain excess money from the economy