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Monetarism
Margaret Thatcher unequivocally ended the Post-War economic and social consensus
She believed in the Free Market
- The less Government interference in people’s lives and businesses the better
- She saw the powerful unions as a barrier to the free market and one that she would work to remove
She took on Milton Friedman’s ideology
- Inflation was caused by government spending
- Interest rates were increased to deter borrowing
- Inflation fell from 19% in 1979 to 5% in 1983