economics reforms of united kingdom

8/17/2019 Economics Reforms of United Kingdom

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ECONOMICS REFORMS O

UNITED KINGDOM

By

R. V. Kalyana Ka

Shashank Pare

Nishanth

Guneet gamb

Abhilasha

Manish mohan g


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MONETARY MEASURES

• After the UK as e!e"ti#ely for"e$ from the %&"hange Rate Me"hanism '%

beginning of )**+, the -ory go#ernment establishe$ an ination target as

gui$ing ob/e"ti#e for monetary poli"y

• -he ne 0abour go#ernment has reiterate$ the importan"e of a

ination poli"y.

•

1t 2ui"kly grante$ the Bank of %nglan$ in$epen$en"e to set interest rathe aim of a"hie#ing an ination target of 3.45. -he UK manages monetar

through open market operations by buying an$ selling o#ernight fun$s an

"ommer"ial paper.

• . -here are no e&pli"it reser#e re2uirements in the banking system.


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IMPORTANT DATES IN GREAT BRITA

•

)676 -he A"t of Union unite$ %nglan$ an$ 8ales ith S"otlan$.

• )649:)69+ Great Britain on "olonial suprema"y o#er ;ran"e in the Se#en + Britain lost its Ameri"an ?olonies in the Re#olutionary 8ar in Ameri"a.

• )6*+:)>)4 Britain $efeate$ ;ran"e in the Napoleoni" 8ars.

• )>7) 1relan$ /oine$ ith Great Britain, forming the Unite$ King$om of Great Britain a

• )>+3 -he @rst Reform Bill ga#e most men of the mi$$le "lass the right to #ote.

• )>+6:)*7) Britain be"ame the orl$=s ri"hest "ountry an$ the British %mpire rea"he

in the Vi"torian Age.

• )*):)*)> Great Britain an$ the other Allies $efeate$ Germany an$ the other ?entra

8orl$ 8ar 1.

• )*+) -he ?ommonealth of Nations as establishe$. )*+*:)*4 Great Britain an$ th

Allies $efeate$ Germany, 1taly an$ apan in 8orl$ 8ar 11.


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CONT…

• )*4:)*4) Britain be"ame a elfare state.

• )*6:)** 1n$ia, Pakistan an$ ?eylon be"ame in$epen$ent members of ?ommo

Nations.

• )*49 Britain, ;ran"e an$ 1srael in#a$e$ %gypt, but ith$re un$er pressure from

"ountries.

• )*9+ Britain=s appli"ation for membership in the %uropean ?ommon Market as r

• )*96 Britain=s se"on$ appli"ation for membership in the %uropean ?ommon Mark

re/e"t. -he go#ernment $e#alue$ the poun$.

• )*6+ Britain be"ame a member of ?ommon Market.

• )*>3 British troops $efeate$ Argentine troops in battles for "ontrol of the ;alklan$


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EXCHANGE RATE POLICY

• Sin"e the UKCs ith$raal from the %RM in anuary )**+, the p

sterling has oate$ freely.

• SterlingCs tra$e eighte$ e&"hange rate ')**7D)77( a#erage$ >9

1n the @rst nine months of )**6, it a#erage$ **.9. -his appre"iatio

a #ariety of fa"tors, in"lu$ing higher interest rates in the UK

"ontinental %urope an$ possibly "on"erns in the market about %ur%"onomi" an$ Monetary Union '%MU(.

• -he ne 0abour go#ernment has in$i"ate$ it #ies %MU f

although it has also $e"lare$ it EunlikelyE that the UK ill /oin %MU

laun"he$ on anuary ), )***.


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CONT…

• -he 0abour go#ernment in general is e&pe"te$ to "ontinue this app

an$ has laun"he$ further re#ies of the regulatory systems go#ern

utilities an$ transportation.

• Although these stru"tural poli"ies ha#e a"hie#e$ substantia

e"onomi" results, some segments of the e"onomy ha#e still not a$

So"ial elfare programs an$ the business "ommunity are still a$/ulosses an$ "hanges in the business "limate resulting from $eregula

pri#atiation.

•


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economics reforms of united kingdom

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