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A review essay on books by (1) Richard A. Chapman, The Treasury in Public Policy-Making (London: Routledge, 1997); (2) Nicholas Deakin & Richard Parry, The Treasury and Social Policy: The Contest for Control of Welfare Strategy (Basingstoke, UK: Macmillan, 2000); (3) HM Treasury, Reforming Britain's Economic and Financial Policy: Towards Greater Economic Stability (Ed Balls & Gus O'Donnell [Eds] Basingstoke, UK: Palgrave, 2002); (4) Richard Holt, Second amongst Equals: Chancellors of the Exchequer since the Second World War (London: Profile, 2002); (5) David Lipsey, The Secret Treasury: How Britain's Economy Is Really Run (London: Viking, 2000); (6) James Naughtie, The Rivals: The Intimate Story of a Political Marriage (London: Fourth Estate, 2001); (7) Hugh Pym & Nick Kochan, Gordon Brown: The First Year in Power (London: Bloomsbury, 1998); & (8) Philip Stephens, Politics and the Pound: Tories, the Economy and Europe (London: Macmillan, 1997). 17 References.

This article draws attention to the increasing importance of the politico-economic context within which public expenditure decisions are taken; briefly outlines the main changes in the system for planning and controlling public expenditure since 1976; and discusses why Heclo and Wildavsky's model of the policy processes stands in need of revision.

THE ARTICLE PRESENTS AN ANALYTICAL FRAMEWORK DEVELOPED TO AID RESEARCH INTO THE IMPLEMENTATION OF THE THATCHER GOVERNMENT'S MEDIUM-TERM FINANCIAL STRATEGY (MTFS). THE FRAMEWORK UTILISES THE GROWING LITERATURE ON THE ANALYSIS OF PUBLIC POLICY IN A WAY INTENDED TO BE RELEVANT TO THE STUDY OF THE IMPLEMENTATION OF ECONOMIC POLICY IN THE UK. SECTION ONE DEALS WITH THE DEFINITION OF THE TERMS POLICY AND IMPLEMENTATION. THIS IS FOLLOWED BY A SECTION WHICH SETS OUT THE ASSUMPTIONS WHICH UNDERLIE THE FRAMEWORK. THE FRAMEWORK ITSELF CONSISTS OF SIX ELEMENTS: THE ANTECEDENTS OF POLICY; DRAMATIS PERSONAE; POLICY STANDARDS AND OBJECTIVES; NEGOTIATION AND CONFLICT; IMPLEMENTATION INFLUENCES ON POLICY AND WIDER SOCIETAL ACTORS. THROUGHOUT THE ARTICLE EXAMPLES FROM RESEARCH INTO THE MTFS ARE INTRODUCED TO ASSESS THE VALUE OF THEORIES DRAWN FROM THE LITERATURE.