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.