UK: A CHANCE TO RECOVER WHILE THE INFLATION DRAGON IS SUBDUED?

In theory, low inflation should mean more jobs. In practice, scope is limited.

Inflation, as everyone knows, is never beaten. Rather, it can be subdued for a while before it regroups and comes back with a vengeance. This has been the pattern of recent years. In the mid-1980s, for example, the collapse in world oil prices led everyone to believe the inflation dragon had been slain. But a couple of years later, and particularly in Britain, it was back, in virulent, fire-breathing form.