Economic growth: onwards and upwards?

Abstract

This paper considers developments in UK growth performance and supply-side policies since the 1980s. It argues that economic reforms made in the Thatcher years and consolidated under subsequent governments delivered improved pre-crisis growth outcomes helped by the ICT revolution and stronger competition in product markets. The new growth economics provided useful insights for policymakers some of which were partly heeded. Recently, as productivity growth has stalled, there has been a turn to 'soft' industrial policy and a fear that the future is one of secular stagnation. The former has made little difference and the latter is unlikely.