Economic developments: mobilisation of resources in wartime; post-war boom; balance of payments issues; changes to British industry and trade
Both World Wars forced Britain to redirect its entire economy towards fighting. After each war, Britain faced a mix of short-term recovery and long-term economic decline.
Real World
Britain's 1945 US loan of $3.75 billion — negotiated by economist John Maynard Keynes — kept the post-war economy afloat but saddled Britain with debt repayments that only ended in 2006.
Exam Focus
Distinguish short-term post-war recovery from long-term structural decline; examiners penalise answers that treat economic change as uniformly positive or negative.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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