The UK’s Achievement of Economic Stability: How and why did it happen?

Tim Congdon

Published: December 2002

The UK achieved a remarkable degree of macro-economic stability in the 1990s. Contrary to expectations when the pound was expelled from the European exchange rate mechanism in September 1992, over the next ten years inflation was kept almost exactly on target and its volatility declined by over 90 per cent compared with the previous 20 years. Stability was achieved when the official aim was to balance the budget and major industries were being de-nationalised, contradicting claims that Keynesian policies are needed.