After the end of World War II, Germany under economics minister and then chancellor, Ludwig Erhard, threw away the shackles of Nazi 'mixed economy' and state intervention. Britain expropriated and intervened.
Erhard, influenced by Wilhelm Ropke, who was himself inspired by Ludwig von Mises, an Austrian economist, created an economic miracle (Wirtschaftswunder) out of a Germany that was destroyed by war. Germany went from strength to strength.
But Britain, which was in a much better shape immediately after war, was progressively weakened by expropriation and state controls as well as the currency crises and devaluations that came from loose monetary policies, under the Bretton Woods soft-peg system.
From opposition benches Thatcher relentlessly opposed the deadly interventionism, and spending of British rulers.
When Thatcher came to office in 1979, the English or the British who were the pioneers in ending serfdom in Europe were now themselves serfs to an ever-expanding state machinery, interventions, regulations and inflation.Despite the best efforts of Friedrich von Hayek, another Austrian economist, to stop Britain from going down the path of inflation and subjugation to the state, by writing in the English language one of his best known works, The Road to Serfdom, the country was in deep trouble.
Throwing post World War II neo-Mercantilist Anglo-Saxon economic orthodoxy aside, Thatcher embraced the economics of liberty of German speakers, who had seen the worst horrors of socialism and statism in action.
In 1975, when she was elected leader of the British Conservative Party, the Institute of Economic Affairs arranged for her to meet Hayek, who, before the war had personally challenged Keynes.
When Thatcher had later visited the Conservative research office, a speaker had prepared a paper on why the Conservatives should take the 'middle way'. The mixed economy had always been the favourite of the worst fascists.
Legend has it that even before the speaker was finished, she dug up from her handbag, a copy of Hayek's work, the Constitution of Liberty and banged it on the table.
"This," she had told the speaker in ringing tones, "is what we believe in."
She was however later accused of resisting Asian immigration, a nationalist policy which was in sharp contrast to her other actions.
Alan Walters, who was a professor at the London School of Economics (where Hayek worked at one time) became her chief economics advisor from 1981.
Walters, who was also at one time at John Hopkins University in the US, later created the Hong Kong currency board to fix the territory's exchange rate, which remains fixed even today.
Residual exchange controls in Britain were abolished, and expropriated industries were given back to the people.
As interest rates were raised - across the Atlantic monetary policy was also tightened in the US - the economy spun into a much needed recession, worsening already high Keynesian led unemployment Thatcher had inherited.
She cut spending and raised taxes.
364 leading horrified economists sent a signed petition asking her to change course.
She held firm. "The lady's not for turning" Thatcher had told doubters within her own party.
The rest, as they say, is history.
Inflation fell, gold, oil and all kinds of commodity prices collapsed as both the pound and the US dollar strengthened.
Though coal mines were shut in Britain, commodity rich countries with authoritarian regimes that oppressed their own people found themselves suddenly without their main source of sustenance. The Soviet Union collapsed.
Britain recovered. Unemployment fell and Britain entered one of the strongest phases of stability in its history.
She was the only woman Prime Minister of Britain and the longest serving one in the 20th century.