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Characterization of macroeconomic policy, associated primarily with Keynesian methods of demand management during the post‐war ‘collectivist’ period in Britain. Stop‐go refers to a specific cycle of expansion and deflation. The stimulation of aggregate demand leads to increased volumes of imports, and a consequent balance of payments deficit. Governments usually responded by depressing demand (rather than devaluing the exchange rate).


Subjects: Economics.

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