All my adult life I have seen British governments driven off their virtuous pursuit of low inflation by market problems or political pressures. I was under no illusions when I took Britain into the ERM. I said at the time that membership was no soft option. The soft option, the devaluer's option, the inflationary option, that would in my opinion be a betrayal of Britain's future.
About this quote
- What does it mean?
- The author argues that maintaining low inflation requires resisting market or political pressures to devalue currency.
- In plain terms
- Keeping inflation low is hard but necessary for the country's future.
- What can you take from it?
- Prioritize long-term economic stability over short-term political gains.
Where it applies
Putting it to work
Questions to consider
- Is low inflation worth short-term pain?
- Who should decide economic priorities?
Another view
Economic rigidity can worsen short-term crises.
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