Explain How Effective Was The National Government

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How Effective was the National Government? • Some National Government policies, did help reduce unemployment and encourage economic recovery, but others were of limited value. • Cutting government spending in 1931, including the wages of public employees like teachers and policemen as well as unemployment benefit, helped to maintain international confidence and stopped the banking crisis. • Leaving the Gold Standard meant that Britain sold more exports to the empire within the 'sterling area' as British exports were cheaper as the pound was allowed to fall. • A more important benefit of coming off the Gold Standard was that the Bank of England was able to lower interest rates. • 'Cheap money' helped recovery in several
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