The failure of Monetarism Flashcards
1
Q
Inflation
A
Inflation stood at 10.3% in 1979 and 10.9% in 1990
Ultimately, no major change
2
Q
Unemployment
A
Slashing of govt spending in 1980 and 1981 budgets led to riots in cities (incl. Brixton in London)
Firms went bankrupt →3 million unemployed in 1982
Unemployment benefits forced up government spending
3
Q
Production
A
Manufacturing fell by 14% in 1980-81
