Post-War British Economic Growth and the Legacy of Keynes
Posted: 13 Jun 1998
Date Written: Undated
The policies used by Britain to finance World War II represented a dramatic departure from the policies used to finance earlier wars and were very different from the policies used by the United States. Britain relied much more heavily on the taxation of factor incomes. In this paper we describe the magnitude of the public finance problem faced by Britain and examine the origins of the fiscal policies that were adopted. We analyze these policies using the perspective of an endogenous growth model. We use the model to contrast the policies actually used with tax smoothing policies and the policies advocated by John Maynard Keynes.
JEL Classification: H56, N44
Suggested Citation: Suggested Citation