A fiscal retreat could be a useful way to fight inflation4 min read 27 Dec 2022, 10:53 PM IST
Price pressures could be fought without the unwelcome consequences of raising policy rates of interest
The world economy is grappling with unprecedented inflation. If one were to look at the prevailing macroeconomic indicators of some advanced economies without knowing which country or part of the world they represent, it would not be an exaggeration to say no one would identify them with the developed West even in their wildest dream. For instance, the UK is witnessing one of its worst inflation spells in 45 years. The UK’s consumer price index including owner occupiers’ housing costs (CPIH) rose on a monthly basis by 1.6% in October 2022, compared with a rise of 0.9% in October 2021.
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