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48.1 The British Economy and the International Economy 48.1 The British Economy and the International Economy
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48.2 New Labour and the International Economy 48.2 New Labour and the International Economy
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48.3 New Labour's Political Success in Economic Policy 48.3 New Labour's Political Success in Economic Policy
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48.4 National Discretion, the End of Decline, and the International Economy 48.4 National Discretion, the End of Decline, and the International Economy
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References References
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48 National Economic Policy
Get accessHelen Thompson is Senior Lecturer in Politics at the University of Cambridge.
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Published:02 January 2010
Cite
Abstract
While the British economy was indeed more internationalized than those in other European states, the emphasis some scholars have placed on the Conservative governments' active encouragement of that openness has risked missing some important political nuances from the 1980s and the first half of the 1990s. New Labour assumed power without having to confront an immediate economic crisis. Its economic success was premised on acceptance of the constraints of an open international economy. The political success of New Labour in economic policy is elaborated here. The New Labour government escaped any consequences for sterling of the burgeoning current account deficit for reasons that would seem to have more to do with the dollar's weakness than any permanent indifference of investors in the present international economy to current account weakness. While relative economic decline appared to be over, significant features of the exceptionalism that was frequently held responsible for it remained.
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