Efficacy of Policy Response to the Financial and Economic Crisis: A Case Study of the United Kingdom

Abstract

This piece of work seeks to perform detailed review and analysis of those factors that precipitated global financial and economic crises in 2008 with a focus on the United Kingdom economy. Impacts of the crises from both micro and macro economy perspectives are also analysed in conjunction with the sudden change in government policies from less rigid fiscal prudence, price stability, unsupportive employment policies as well as weak financial services supervision to unconventional stiff fiscal and monetary policies as well as hard core financial regulations with a primary aim to cleaning up the economic and the financial mess that characterised the meltdown. To finalise this work, it is concluded that efficiency of policy actions to address the economic menace to a large extent, helped British Economy to get out of the crisis despite that all the measures adopted were not considered to be perfect in its entirety. Other potential areas of study are also identified.