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Topic: |
Technology
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Number of pages / Number of words: |
6 / 1561 |
Essay's paper body
She was afraid of challenging welfare state & foreign policy.
1998
The economy would decline rapidly and increase of inflation. Government believed that interest rate should increase from 7% to 15% and also unemployment was expanding, mostly effecting middle class in south England, increase rate hit housing market, mortgage repayment increase also...
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(P. Dorey, pg 173, 1995)
The Thatcher Government wanted to control inflation, as they have known that Labour would tax a lot, this would cause the inflation to escalate, also Monetarist inflation cost economy. Thatcher goal was to eliminate inflation as one of her policy and also wanted to restrain and reduce public expenditure...
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General points of the essay
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Suppose the British economy is at long run equilibrium when it suffers an external shock due to a 15% increase in the price of oil, believed to be permanent.
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What is the function of the Welfare state?
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