The UK’s cost -of-living crisis
example, inflation in the UK is 9.4% compared to 7.6% in the Germany and 5.8% in France for July [2022] (Romei, 2022). This shows that all households in the UK will be most likely worse off than in most other developed countries and thus the government must decide, when introducing contractionary policies whether the ‘cure is far worse than the disease’ (Minarik, 1979). I would sway to allowing inflation to fix itself and the government should just introduce policies that help those on lower incomes during this cost-of-living crisis.
Bibliography
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