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inflation
the rise in prices
monetarism
the belief that governments had paid for welfare provision by printing money, causing inflation. In order to reduce inflation, government sending had to be cut and the money supply had to be restricted
flagship policy of Thatcher’s early gov.
influenced by economist Milton Friedmann
Real earnings
an individual’s income after considering the impact of inflation, that they actually have available to spend in goods
Direct taxation
taxation paid by individuals on income they earn (eg, income tax/national insurance)
Indirect taxation
taxation paid on money spent on services, not based on earnings (eg, VAT)
Privatisation
also known as ‘denationalisation’, the selling of publicly owned industries to the private sector
Deregulation
the loosening of controls on the banks and financial markets, which led to a massive boom in investment banking and financial speculation
Realignment
the belief that Keynesian economic had allowed inflation to rise and this must be bought under control for the economy to grow and be successful
Supply side economics
increasing the supply of goods will lead to economic growth - can be achieved through lower taxes and business deregulation
