This presentation is part of: E60-1 (1888) Monetary and Fiscal Policy

Inflation Economics: The Heath-Barber Boom, 1972-74

Gerald R. Steele, n/a, Economics, Lancaster University, Lancaster, LA1 4YX, United Kingdom

The UK macroeconomic boom of the early 1970s is an experiment that refutes the notion of cost-push inflation. However, that nonsense endures as the consequence of two factors. The first is the convenient ruse by which the state ducks its responsibility for monetary inflation and points the finger in other directions. The second is a potential to confuse the source of an individual price increase (rising scarcity) and the source of general price increases (excessive money).