The last meeting of the Monetary Policy Committee (MPC) focused on low interest rates and the risks of inflation. The discussion on low interest rates was, it seems to me at least, a pointless one because the alternative is higher interest rates. Does anyone want that, ever?
The other issue, of inflation, deserves more attention because it’s important to recognise that while it always poses a political risk, there are times when it is an economic necessity. This is one of those times.
I am not sure if the MPC went into the sources of inflation. In any case, a single figure
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