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Fascinating, isn’t it?

The relevance of this last one is to show that inflation peaks are usually pronounced, and rarely result in plateaus. Even if they do, those plateaus are of short duration after which the trend is that there is an almost invariable sharp decline.

Politicians can make things worse, of course: Thatcher did in the early 80s, which most people tend to forget, but there are always consequences for deliberately trashing an economy, as she did. These exceptions apart, it is clear that inflation has not only recently, but throughout 800 or more years of history had a habit of correcting itself.

The assumption underlying that. That previous governments didn’t – just never ever – change policy so as to reduce inflation. It all happened by magic instead.

5 thoughts on “Fascinating, isn’t it?”

  1. Rejoice at the fact that the Blessed Margaret lives not only rent free but also occupying the entire top floor and attic of cretins like Murphy.

    And she’s nailed up the door to the loo !

  2. As others have suggested
    Decimate Whitehall, council planning and diversity departments
    Abolish 50 (moar!) univesities

    Keynesian demand suppression.
    Inflation vanquished at a stroke.
    Bastiat 1; Keynes 0

  3. He cannot even interpret his own graph. In the period from 1970 to 1993,inflation was hardly ever lower than 5%. How is it possible to conclude that inflation is short-lived and just falls away after a short period of time? He was even alive during this period and doesn’t seem to have noticed it

  4. Inflation peaked in 1974-5-6 and remained at horrifying levels until 1979-80 because Callaghan’s government postponed the rise in electricity prices until after the election. Those of us who saw the value of our £ savings worse than halved during the 1974-9 Labour government know that he is lying through his dentures. Mrs Thatcher and Geoffrey Howe brought inflation under control after five disastrous years.

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