Economic sadism is not needed to tackle inflation: it always goes away like night follows day

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A depressing poll release from YouGov suggested this yesterday:

Apparently, people are quite convinced that bringing down inflation is more important than avoiding recession, whilst beating inflation is even more important than cutting interest rates.

Years of propaganda from the government and the Bank of England has convinced people that economic sadism on those who have to borrow is the price worth paying for the supposed advantage of reducing inflation. It would seem that very few ask the obvious question, which is how increasing the price of money can prevent the value of money from deteriorating.

The reality is that inflation always goes away anyway. Take, for example, this St Louis Fed chart which summarises data from the Bank of England on inflation trends in first England and then the Uk over a period of more than 800 years:

After a period of inflation there has, historically, always been deflation, and even if the latter has been rare of late, there is always a return to more normal rates. The simple fact is that despite what politicians and the Bank of England claim, inflation does not persist. The policy measures put in place to supposedly tackle it only make things worse. But people have been persuaded otherwise.

Economics, it seems, has not yet got out of the age of mythology.

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