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The description given to economic policy in the U.K., particularly during the 1960s. The government used fiscal and monetary controls to reduce aggregate demand and so to preserve the exchange rate, which tended to come under severe pressure during boom conditions in the home market. These controls, together with the underlying trade cycle movements, produced subsequent periods of stagnation and rising unemployment, which in turn encouraged the government to stimulate the economy and so brought about a return to boom conditions.

Reference: The Penguin Dictionary of Economics, 3rd edt.