By Mervyn King, Executive Director and Chief Economist of the Bank
Mervyn King, Executive Director and Chief Economist of the Bank, discusses the importance of monetary stability. He argues that the period of post-war inflation has produced an inflation generation—a generation for whom inflation is the norm and affects every major economic decision. Mervyn King reviews the static and dynamic costs associated with inflation and concludes that the benefits of price stability are substantial.
Monetary stability: rhyme or reason?