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S1E6: How economics really affects you

Making Money

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The Cost of Living Crisis in the UK

Inflation is about the growth rate. And it's compounded on the years before. So you very rarely, through history, or at least modern history, see periods where prices go down over deflation. But our job is not to bring inflation down so people's wages can catch up. It's to say, over the medium term, inflation will be kind of low and steady and will kind of tick along. Then hopefully if everyone kind of buys into that, then wages might kind of catch up because they'll be able to give pay rises.

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