Forty years ago, it was widely assumed that high interest rates were the only responsible policy to deal with the economic problems of the day. Now it is widely assumed that only low interest rates can suffice. Clearly the decline of high inflation has played a large part in this change. But it is not the only factor. There has also been a change in mindset about the importance of government debt (and deficits), the relative merits of savers and borrowers, and the role of the financial markets. It has amounted to a revolution in economic policy.

Thatcher’s people


Philip Coggan

Economist columnist, opinions generally my own, typos always my fault. Author of Paper Promises, The Last Vote and The Money Machine

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