From Prescribed Policy to Pragmatism

Abstract

Chapter 1 examined the origins of the monetary policies pursued by the Thatcher and Reagan administrations and how these policies were initially implemented. This chapter will focus on how the respective administrations viewed each other’s ‘monetarist’ policies; Friedman’s response to the two administrations’ policies; and, more briefly, the monetary policies pursued by Thatcher and Reagan during their remaining time in office. Finally, this chapter will draw conclusions as to the extent of policy transfer between the Thatcher and Reagan administrations with regard to monetary policy. Again it must be noted that the ideas of ‘monetarism’ will be assessed, rather than an in-depth discussion of the implementation and practice of monetary policy in Britain and America attempted.