Economic Growth in the UK: Growth’s Battle with Crisis

Abstract

In this second paper in a series of four, we examine how the era of sustained economic growth also gave rise to recurring economic crises. Assessing the economic turbulence of the late 19th century and the early 20th century, and three prominent crises of the 20th and early 21st centuries: the period following the Second World War, the 1980–1981 Recession and the 2008 Financial Crisis, we survey how the economy and policy have reacted historically to shocks to growth, how crises have restructured industry and work, altering productivity and impacting future growth potential, and how the long-run growth trend persists despite periods of decline or stagnation.