Economic Growth During The Great Depression And The Recent...

The government has been implementing policies in the improvement of the growth in the UK. Such as improving economic growth during the Great Depression and the recent financial crisis. A brief history by (Pettinger, 2016) on the use of fiscal policy, Keynes promoted the use of fiscal policy as a way of boosting growth. Moreover, during 1970-1980s the government switched to using monetary policy in influencing the economy. However, the government later reverted to using the fiscal policy in the recession of 2008-2013. Whether or not fiscal policy is the key policy in the process of improving economic growth is the issue. According to (Parkin, Powell and Matthews, 2014) Economic Growth is defined as a sustained expansion of production possibilities measured as the increase in real GDP over a period of time. Achieving economic growth depends on the government fulling one of its macroeconomic objectives between them is stable economic growth, low level of inflation, low level unemployment, and adequate level of balance of payments. UK’s economic growth fluctuates significantly year to year as mentioned by (Fyfe and Threadgould, 2013, p.1) â€Å"The trend rate of economic growth of the UK economy has been assumed for several years to be between 2.5% and 2.75% per year†. The fluctuations can be seen in Figure 1 shows detail changes in economic growth. The â€Å"Credit Crunch†, from mid-2007 to 2009 UK’s growth fell from 2.7% to -2.3% resulting in a recession. However, UK has beenShow MoreRelatedThe World s Economy Was Devastated1732 Words   |  7 Pagesinto what is now known as the â€Å"Great Recession†. Its neighbour to the north, Canada also felt these affects as unemployment and poverty grew. 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