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    Question: What has happened to the UK economy since the mid 1980s and how has the government used interest rates to influence events?

    I have written a bit about the ERM. What else do I need to include?
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    (Original post by *boo*)
    Question: What has happened to the UK economy since the mid 1980s and how has the government used interest rates to influence events?

    I have written a bit about the ERM. What else do I need to include?
    Indepedance of the BoE, their record etc etc
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    (Original post by *boo*)
    Question: What has happened to the UK economy since the mid 1980s and how has the government used interest rates to influence events?

    I have written a bit about the ERM. What else do I need to include?
    Use to control inflation - rein in consumer spending, house price growth?
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    (Original post by *boo*)
    Question: What has happened to the UK economy since the mid 1980s and how has the government used interest rates to influence events?

    I have written a bit about the ERM. What else do I need to include?
    That's a huge question, so I could talk for ages, but I've got my own economics assignment to do for tuesday so I'll keep it breif.

    The mid 1980s saw a huge economic boom, caused by the conservative chancellor to release money and increase the money supply drastically. Trying to prevent further damage they caused, they government then decided to increase interest rates to very high levels of upto 15%. This forced people to save save save, and lowered aggregate demand, but not before crashing the housing market: people could not afford their variable mortgage repayments so there were loads of reposessions by banks, who put the properties back on the market. People also had poor expectations and withheld their housing demand until the predicted recession passed.

    That's upto the early 1990s for you, I'm sure someone else can fill some more in.
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    (Original post by mik1a)
    That's a huge question, so I could talk for ages, but I've got my own economics assignment to do for tuesday so I'll keep it breif.

    The mid 1980s saw a huge economic boom, caused by the conservative chancellor to release money and increase the money supply drastically. Trying to prevent further damage they caused, they government then decided to increase interest rates to very high levels of upto 15%. This forced people to save save save, and lowered aggregate demand, but not before crashing the housing market: people could not afford their variable mortgage repayments so there were loads of reposessions by banks, who put the properties back on the market. People also had poor expectations and withheld their housing demand until the predicted recession passed.

    That's upto the early 1990s for you, I'm sure someone else can fill some more in.
    that's really useful- thank you for your help!
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    lol np I was in an economics mood
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    There is a new, free powerpoint presentation here that covers this topic

    http://www.tutor2u.net/economics/icr...icy/index.html

    Jim

    (Original post by *boo*)
    Question: What has happened to the UK economy since the mid 1980s and how has the government used interest rates to influence events?

    I have written a bit about the ERM. What else do I need to include?
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    (Original post by Jim Riley)
    There is a new, free powerpoint presentation here that covers this topic

    http://www.tutor2u.net/economics/icr...icy/index.html

    Jim
    hey jim
    your sites really good, there are posters too at my school about your site, impressive stuff
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    (Original post by Jim Riley)
    There is a new, free powerpoint presentation here that covers this topic

    http://www.tutor2u.net/economics/icr...icy/index.html

    Jim
    Thanks
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    you can always talk about the equations as well!! - AD=C+I+G+(X-M) type things and the independace of the MPC and why that has improved the long term prospects for the economy..... hope i am of some assistance - at least it is something you can easily find stuff about though!! - did anyone do the AQA Mod 1 test in january btw? anyone else find it hard? got a C but will retake...
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    Ta Wolf.

    We're expaning the free content a lot over the next few months to include geography, ict and english too.

    jim

    (Original post by TheWolf)
    hey jim
    your sites really good, there are posters too at my school about your site, impressive stuff
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    ...I wish our forum was as busy as this one. I think UKL is definitely the leading student forum.

    http://www.tutor2u.net/forum/default.asp

    Jim
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    well interest rates since 1997 when labour came into power have no longer been under the control of the chancellor. A monetary policy committee was set up made up of bank of england members as well as independent economists. This maent that the sole aim of interest rates was to control inflation to withoin 1 percentage point of a government target (of about 2.5%). This was to keep inflation low ans so, encourage growth
 
 
 
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