The commitment to Monetarism

Question 1

Inconsistency

Answer 1

Thatcher didn’t apply monetarism consistently
E.g. In her first two years, allowed above-inflation pay settlement of 16% to end steel strike and awarded public sector a 25% pay rise

Question 2

Cabinet division

Answer 2

Divided into ‘wets’ (opposed) and ‘dries’ (supporters)
1980 Conservative Conference: Thatcher asserted monetarism would continue
→“You turn if you want to: the lady’s not for turning”

Question 3

Phased out

Answer 3

Monetarism became less significant from 1983
Shift towards ‘supply-side’ economics (stimulating the free economy and not limiting it → tax reductions, deregulation, decline of union power)