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Keeping the lid on inflation
Author(s) -
Nixon James
Publication year - 1995
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/j.1468-0319.1995.tb00025.x
Subject(s) - economics , credibility , monetary policy , inflation (cosmology) , interest rate , dilemma , monetary economics , macroeconomics , keynesian economics , political science , philosophy , physics , epistemology , theoretical physics , law
James Nixon and Andrew Sentance examine the current monetary policy dilemma: whether to raise interest rates in response to sterling weakness, or pay more attention to subdued consumer demand. They conclude that interest rates should rise (from their rate at the time of writing of 6.75%), but that other changes to the monetary framework would enhance the credibility and effectiveness of current UK anti‐inflationary policy.