The Determinants of Inflation in Post-War Britain
9 Pages Posted: 1 Jun 2006
The paper examines what determined inflation in Britain in the post-WWII era. Several determinants are on hand as regards the inflation, depending on the examined period. For instance, wages and budget deficits are accentuated as main determinants in the 1950's and 1960's. However, growing inflation in the 1970's made Ms. Thatcher engage in severe antiinflation policy which reduced the inflation in the 1980's. Inflation targeting regime imposed in the 1990's contributed towards achieved macro-stability and maintained it until today.
Keywords: Inflation, Britain, U.K., Post-war
JEL Classification: E31, P24, P44
Suggested Citation: Suggested Citation