The Politics of Inflation

Interest rates and inflation are political because they have distributionary effects, don't they? They affect certain groups in society more than others. And when they do so in a way that affects the governing party's ability to get elected, that's not sustainable. I think that that idea that was there in the 90s, and it wasn't just in Britain, that somehow everybody agreed that price stability was good for everybody is gone. We can't live in that world anymore," he says.