Economic developments: post-war boom; balance of payments issues and 'stop-go' policies
After World War Two, Britain's economy grew rapidly and living standards rose. But the government repeatedly had to slam the brakes on growth to stop the country spending more on imports than it earned from exports.
Real World
In 1955, Chancellor Rab Butler cut taxes ahead of the general election, fuelling a consumer boom — then his successor Peter Thorneycroft was forced to raise interest rates sharply in 1957 to stop the pound collapsing, illustrating the classic 'stop-go' cycle in action.
Exam Focus
Always explain the mechanism: boom → imports rise → balance of payments deficit → deflation measures → recession — don't just name 'stop-go'.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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