Two Inflation Narratives For Britain’s Ills Are Fighting For Supremacy

Only one is gaining a lot of traction at the moment

Supply Shocks

One narrative of current inflation is that it is mainly being caused by supply shocks, much like the oil shocks of the 1970s. In this reading, the recovery from the Pandemic followed by the War in Ukraine has caused a supply side crunch.

Monetary Policy

The other narrative argues that inflation is mainly caused by the outrageous sums of money that were printed under Quantitive Easing by the Bank of England, both during the pandemic and beforehand, that are finally making their way into our economy.

Narrative supremacy

Under the Truss leadership, it was very clear that she (and by extension the Conservative members who backed her) had bought into the first narrative and the first narrative only.

Conservative Ideology

Of the many reasons that conservatives might not be able to accept the second narrative, two stand out.

Sunak’s Choices

Whether it is Brexit or the other ideological issues the Conservative Party are facing at the moment, it may yet be the unresolved issues that Sunak won’t face that will drive the Conservative Party back into crisis and end his Prime Ministership the way it ended his predecessors.

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Elizabeth Kasprzyk

Elizabeth works writing software for an educational video streaming service and is also transgender.