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INFLATION ECONOMICS: THE HEATH–BARBER BOOM, 1972–74

Authors


G. R. Steele is Reader in Economics at the Lancaster University Management School. His book, The Economics of Friedrich Hayek (second edition, 2007), is published by Palgrave (G.Steele@lancaster.ac.uk).

Abstract

The UK macroeconomic boom of the early 1970s is an experiment that refutes the notion of cost–push inflation. However, such 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).

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