Pearson Edexcel · A-Level · History
Course version: 9HI0 · Version from Sept 2015
Economic challenges in 1918 and post-war boom, crisis and recovery,…
Full specification wording
A changing political and economic environment, 1918–79: Economic challenges in 1918 and post-war boom, crisis and recovery, 1918–39; creating a managed economy, 1939– 51; the response to economic challenges, 1951–79.
This theme examines the economic challenges of 1918 and the short post-war boom, followed by crisis and recovery across 1918–39.
Checked against the Pearson Edexcel 9HI0 specification (opens in a new tab) on .
- Point 2 of 3
- 4 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
This theme examines the economic challenges of 1918 and the short post-war boom, followed by crisis and recovery across 1918–39. It asks how far the 1920s brought depression in staple industries, how the 1931 financial crisis and the Gold Standard exit shaped policy, and how recovery varied by region. It then covers the creation of a managed economy from 1939 to 1951, including wartime controls, Keynesian demand management and the post-1945 Labour programme. Finally it analyses responses to economic challenges from 1951 to 1979, such as stop-go policies, devaluation, inflation, industrial relations and the turn to monetarism. Strong answers weigh evidence and interpretations about how far governments could manage the economy.
What earns the marks
- Explains the 1918 post-war boom and the return to gold in 1925, including effects on exports and unemployment.
- Analyses the 1929–31 crisis, the May Report and the 1931 political and economic response.
- Assesses recovery in the 1930s, including cheap money, housing and regional variation.
- Explains wartime controls and the creation of a managed economy, including Keynesian ideas and 1945–51 nationalisation.
- Evaluates responses from 1951 to 1979, such as stop-go, devaluation in 1967, inflation and the 1970s crises.
- Uses economic evidence and interpretations to judge how successfully governments managed the economy.
Common mistakes and how to put them right
Assuming the 1930s were uniformly depressed.
Put it right: Distinguish struggling staple regions from growing new industries and consumer sectors.
Treating the return to the Gold Standard in 1925 as harmless.
Put it right: Explain its deflationary effect on exports and employment.
Confusing the 1931 crisis with the 1929 Wall Street Crash.
Put it right: Separate the American crash from Britain's balance of payments and sterling crisis.
Exam tips
- Use the three periods in the statement as a structure so no phase is neglected.
- Support economic claims with specific data, such as unemployment figures, exchange rates or budget measures.
- Link economic policy to political consequences, such as the 1931 crisis or the 1970s strikes.
Try the lesson
The start of the A changing political and economic environment, 1918–79: Economic challenges in 1918 and post-war boom, crisis and recovery, 1918–39; creating a managed economy, 1939– 51; the response to economic challenges, 1951–79. lesson, made from checked teaching notes for this specification point.
Have a go first
What was the main economic problem facing Britain immediately after the First World War in 1918?
Listen
This theme examines the economic challenges of 1918 and the short post-war boom, followed by crisis and recovery across 1918–39. It asks how far the 1920s brought depression in staple industries, how the 1931 financial crisis and the Gold Standard exit shaped policy, and how recovery varied by region. It then covers the creation of a managed economy from 1939 to 1951, including wartime controls, Keynesian demand management and the post-1945 Labour programme. Finally it analyses responses to economic challenges from 1951 to 1979, such as stop-go policies, devaluation, inflation, industrial relations and the turn to monetarism. Strong answers weigh evidence and interpretations about how far governments could manage the economy. A strong answer earns marks for these points. Explains the 1918 post-war boom and the return to gold in 1925, including effects on exports and unemployment. Analyses the 1929–31 crisis, the May Report and the 1931 political and economic response. Assesses recovery in the 1930s, including cheap money, housing and regional variation. Explains wartime controls and the creation of a managed economy, including Keynesian ideas and 1945–51 nationalisation. A common slip: Assuming the 1930s were uniformly depressed. Instead, distinguish struggling staple regions from growing new industries and consumer sectors. Exam tip: Use the three periods in the statement as a structure so no phase is neglected.
Put the events in order
Put these events in the order they happened, earliest first.
- 1. The return to gold
- 2. Economic challenges and the short post-war boom
- 3. The creation of a managed economy through wartime controls
- 4. The crisis beginning with the Wall Street Crash
- 5. The financial crisis and the political and economic response
Key words
Say what each word means before you turn the card.
Boom, crisis and recovery
Try answering aloud or in your head before turning the card.
Managed economy and wartime controls
Try answering aloud or in your head before turning the card.
Keynesianism and the post-war settlement
Try answering aloud or in your head before turning the card.
Inflation, devaluation and the end of consensus
Try answering aloud or in your head before turning the card.
See every definition
- Boom, crisis and recovery
- The short post-war boom of 1918 followed by crisis and recovery across 1918–39, including depression in staple industries and regional variation in recovery.
- Managed economy and wartime controls
- The creation of a managed economy from 1939 to 1951, including wartime controls and the post-1945 Labour programme.
- Keynesianism and the post-war settlement
- Keynesian demand management and the post-1945 Labour programme, including 1945–51 nationalisation, forming part of the creation of a managed economy.
- Inflation, devaluation and the end of consensus
- Responses to economic challenges from 1951 to 1979, such as stop-go policies, devaluation, inflation, industrial relations and the turn to monetarism.
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