On September 28 1976 British prime minister James Callaghan made a momentous speech to the Labour party annual conference in the Lancashire seaside town of Blackpool. It was later described as the “first monetarist speech” by a British prime minister, albeit a socialist.

Callaghan advised his party delegates: “Britain faces its most dangerous crisis since the war ... We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists.”..

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