The UK achieved a remarkable degree of macro-economic stability in the 1990s.
Contrary to expectations when the pound was expelled from the European
exchange rate mechanism in September 1992, over the next ten years inflation
was kept almost exactly on target and its volatility declined by over 90 per cent
compared with the previous 20 years. Stability was achieved when the official aim
was to balance the budget and major industries were being de-nationalised,
contradicting claims that Keynesian policies are needed.