Economic developments: post-war boom; balance of payments issues and 'stop-go' policies
Britain enjoyed strong economic growth in the 1950s, but recurring money problems forced governments to repeatedly switch between boosting and restricting the economy — a damaging cycle known as 'stop-go'.
Real World
In 1957, Harold Macmillan told a crowd in Bedford that Britons had 'never had it so good' — a remark that captured genuine post-war prosperity but also masked the balance of payments crises that would force his government into repeated deflationary 'stop' measures.
Exam Focus
Define 'stop-go' precisely in your answer — state that it means alternating deflation and reflation — before explaining why it was economically damaging.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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