Title

Narrative Account of the Great Inflation in the UK, 1961–1997

Author(s)

Michael Bordo Michael Bordo (Rutgers University)

Oliver Bush Oliver Bush (Bank of England)

Ryland Thomas Ryland Thomas (Bank of England)

Abstract

This narrative paper provides a detailed account of the Great Inflation in the United Kingdom from 1961 to 1997, serving as a companion to the analytical account of fiscal policy presented in Bordo, Bush, and Thomas (2025). We discuss the background fundamentals in place at the outset of the Great Inflation and document the distinct phases of inflation, the unique features of the UK’s experience relative to other advanced economies, and the interplay between fiscal, monetary, and incomes policies. By placing the UK’s inflationary episodes within their institutional and historical context, this paper offers a qualitative perspective that complements the quantitative analysis of the main paper and informs ongoing debates about the causes and consequences of persistent inflation.

Creation Date

2025-10

Section URL ID

Paper Number

348

URL

https://gceps.princeton.edu/wp-content/uploads/2025/10/wp348_BordoBushThomas_UK_NarrativeAccount.pdf

File Function

Jel

E4, E6, N10

Keyword(s)

Great Inflation, fiscal policy, inflation expectations, money growth, United Kingdom

Suppress

false

Series

3