DP386 The Implications of British Macroeconomic Policy in the 1930s for Long Run Growth Performance
|Author(s):||Stephen N Broadberry, Nicholas Crafts|
|Publication Date:||March 1990|
|Keyword(s):||Employment, Productivity, Public Policy|
|JEL(s):||044, 122, 824, 825|
|Programme Areas:||Human Resources|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=386|
The paper provides a synthesis of recent research relating to supply side policy in the 1930s in a period when government sought to raise prices given sticky wages. We argue that as a politically constrained strategy to limit rises in unemployment this made sense. A bargaining model approach suggests, however, that this had a harmful impact on productivity growth by stifling competitive pressure and retarding rationalization of old industries.