Medium-Term Financial Strategy (MTFS)

Updated: Aug 20, 2021

The policy adopted by the UK government in 1980 of controlling inflation by embarking on a long-term programme of steady reductions in government borrowing and in the rate of growth of the money supply. This self-imposed constraint on policy-making involved a target range for the growth of sterling M3 falling by 1 per cent each year. The policy continued until 1987 and was replaced by shadowing Deutschmark.

Reference: Oxford Press Dictonary of Economics, 5th edt.

Sources & references
Risk disclaimer
James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.