Theory that the government should increase the value of money by reducing its supply. It was applied through rising interest rates and supplying less money. Results were rise in unemployment to one million and social unrest.
1 of 10
Privatisation
Intention was to gain revenue for the government from popular capitalism. British airways, steel, telecom and gas were sold of between 1988-89, raising £7 billion.
2 of 10
Deregulation
The government believed that government intervention had caused economic decline. October 1986, the stock market is deregulated. A lack of regulation and computers making instant transactions makes London a centre of world finance.
3 of 10
Supply-Side economics
By the mid-1980's monetarism became less significant but the economy was stimulated by creating greater demand (supply-side economics) this involved: deregulation, extensions of credit, tax reductions, and a decline of union power.
4 of 10
Black Monday
Monday 19th October 1987. Prices of stocks rose until they became significantly overvalued and then collapsed. The value of the London StockMarket fell by £50.6 million.
5 of 10
The Big Bang
1986, period of huge growth in the financial sector. It made consumers more willing to borrow money to pay for consumer goods.
6 of 10
The Big Bang successes
Banks made huge profits, Britain became one of the leading financial centres in the world, huge growth in the financial sector
7 of 10
The Big Bang failures
Household debt increased from £16 to £47 billion 1980-89, created a yuppie culture that caused the 2008 crash,
8 of 10
The Big Bang people who benefitted
Banks as a yuppie culture was created, foreign companies as there was a huge increase in consumer spending on foreign goods,
9 of 10
The Big Bang people who didn't benefit
The working classes they borrowed too much resulting in huge debt
10 of 10
Other cards in this set
Card 2
Front
Intention was to gain revenue for the government from popular capitalism. British airways, steel, telecom and gas were sold of between 1988-89, raising £7 billion.
Back
Privatisation
Card 3
Front
The government believed that government intervention had caused economic decline. October 1986, the stock market is deregulated. A lack of regulation and computers making instant transactions makes London a centre of world finance.
Back
Card 4
Front
By the mid-1980's monetarism became less significant but the economy was stimulated by creating greater demand (supply-side economics) this involved: deregulation, extensions of credit, tax reductions, and a decline of union power.
Back
Card 5
Front
Monday 19th October 1987. Prices of stocks rose until they became significantly overvalued and then collapsed. The value of the London StockMarket fell by £50.6 million.
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