ABSTRACT
For both the world economy and for Britain, the period from 1973 has contrasted sharply with the rapid growth experienced between 1945 and the early 1970s. Wage inflation first began to accelerate in the late 1960s, at a time when real wages were rising slowly because of growth in public spending and consequent increases in the tax burden. Cost-push theories assume that the supply of money will, broadly speaking, rise to meet the increased demand caused by wage and price increases. The impact of trade union pressure can be expressed in terms of the difference between the feasible real wage and the target real wage. However, a more systematic policy gradually emerged, with a focus on the removal of institutional rigidities throughout the economy. The thrust of government policy was to move away from industry-specific Training Boards to local Training and Enterprise Councils, which rely more on demand from individual firms for training provision.
