The Importance of Inflation in the UK

Jagjit Chadda: We see unemployment rising a bit to something like just slightly over 5% in a year and a half or so. That's not high by historical standards at all. What you would expect under the circumstances, if we were at full employment with people paying taxes on their income, that we would then be in a small fiscal surplus. Sadly, of course, because in part because of these incoming equalities,. even those high levels of employment don't generate sufficient taxes to lead to the balanced budget  that we would require. You can catch us every weekday warning here for Bloomberg Daybreak.