Delivering growth while reducing deficits: lessons from the 1930s

Nicholas Crafts
November 2011

Conditions in the 1930s were very similar to those found today: interest rates were already low, the government deficit needed to come down, and the world economy was in disarray. Yet the UK economy grew by almost 20 per cent between 1933 and 1937. This success was built on the government announcing that prices would rise and interest rates would remain low, which gave consumers and firms confidence to borrow and spend. This in turn stimulated the economy.

Today, Britain is in the same position and needs to achieve the same result. In a new report for CentreForum, Professor Nicholas Crafts looks at what the government did then – and what we can learn from history...

Download the full report.