Reformist programmes in the planning for post-war economic policy during world war ii

Abstract

Extract

The Great Depression of 1929–33 saw the beginnings of a revolution in the history of economic policy formation in the West. When at the outset of the depression, the ‘Old Economic Policy’ was still seen to be in operation, an ever-increasing resistance arose against the consequent unemployment and indeed against the very notion of the inevitability of depression. For the economic policy, this meant a support for an active fiscal policy, as against the almost complete dominance of monetary means. During the 1930s, however, support for the ‘New Economic Policy’ was not widespread, and most of the instances of its application remained incomplete. The most resolute use of the new economic policy was made in Sweden by the Social Democratic government from 1932. The new economics was also strongly advocated by the British Liberal Party, which, however, hardly had any influence. The best known example of all is that enshrined in the New Deal of the Roosevelt administration.