Demand-side policies were first introduced in the UK after 1945 and continued to be the main approach to macroeconomic management until well into the 1970s. However, even by the 1960s it was becoming clear that the ability of demand-side policies to deliver macroeconomic success was limited. During the boom phase of the cycle inflation was reaching higher and higher levels and current account deficits were becoming more severe. During the recession phase of the cycle unemployment reached higher and higher levels and in general the rate of economic growth in the UK lagged well behind that of other developed countries. Despite this it was not until the 1980s that emphasis shifted from demand-side policies to supply-side policies.
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