To analyse the different policies of the United Kingdom you first have to know what all governments want from their macroeconomic policies. Research shows that all governments have 4 major targets when it comes to macroeconomics. These are: 1.low inflation CPI=2%
2.Strong economic growth, but, not inflationary growth. Increasing long run trend rate of growth 3.reduce unemployment
4.avoid large deficit on current account balance of payments
One of England’s policies was to nationalise a central bank (the UK has had the Bank of England set up in 1694, made independent in 1997), which sets monetary policies for the UK. Set up in 1997 one of its main goals and a macroeconomic objective of this bank was monetary (controls the supply of money into the economy and sets interest rates to control the supply and demand for money in an economy) stability. Monetary stability means stable prices, low inflation, and confidence in the currency. Stable prices are defined by the Government's inflation target, which the Bank...