Mrs Thatcher and British Economy

A question from Yahoo! Answers:

What’s Mrs Thatchers greatest contribution to British Economy?

I found some about her economic policies, yet not much contributions on economy was mentioned. School project, please help.

Britain is an open economy with floating exchange rates. In this situation, fiscal policy (to which prime minister contributes) only determines the direction of international capital flows. Domestic economy in this set of circumstances only responds to monetary policy, which is set by the Bank of England. So whatever happens to modern British economy on a macro level is mainly due to the Bank of England; prime ministers are by and large irrelevant.

Read up on the Mundell-Fleming model:…

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