{"id":76,"date":"2025-08-07T20:54:28","date_gmt":"2025-08-07T20:54:28","guid":{"rendered":"https:\/\/routledgelearning.com\/politicsuk\/?p=76"},"modified":"2025-10-10T13:29:25","modified_gmt":"2025-10-10T13:29:25","slug":"chapter-25","status":"publish","type":"content","link":"https:\/\/routledgelearning.com\/politicsuk\/part-6-the-policy-process\/chapter-25\/","title":{"rendered":"Chapter 25"},"content":{"rendered":"\n
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Chapter 25<\/h1>\n\n\n

Economic policy<\/em><\/em><\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

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Chapter Summary<\/h2>\n\n\n\n

Economic policy went through a long period when it was \u2018depoliticised\u2019, particularly after the transfer of the setting of interest rates to the Bank of England. This reflected the influence of the \u2018rules v. discretion\u2019 debate in economics, which argued that the more policy decisions that were rules-based the better as politicians were liable to be influenced by short-term electoral considerations. The GFC has seen a reintroduction of politics into economic policy, which has become more central to the political process once again, something that was reflected in views expressed in the referendum campaign that many people had seen their standard of living deteriorate as the results of the effects of globalisation. Although the Gini coefficient as a measure of inequality was actually improving, there was concern about the growing gap between the very rich and the rest of the population, many of whom had become reliant on food banks. There was a widely held view that economic policy was simply not delivering for large parts of the population.  The Labour Government elected in 2024 faced a highly challenging economic environment that threatened the achievement of its programme.<\/p>\n<\/div>\n\n\n\n

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Learning Objectives<\/h2>\n\n\n\n
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  • To identify the nature of economic policy.<\/li>\n\n\n\n
  • To explain the economic policy-making process.<\/li>\n\n\n\n
  • To explain shifts over time in the conduct of economic policy.<\/li>\n<\/ul>\n<\/div>\n\n\n\n
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    Quizzes<\/h2>\n\n\n\n

    Test your knowledge with the Chapter 25 quizzes!<\/p>\n\n\n\n

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    Quiz<\/h3>\n<\/div>\n\n\n\n