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Podcast: Beyond Currency
Episode: 14 July 2023 - Is the U.K. facing a debt crisis?
Description: In times of high inflation, the delicate balance between fiscal and monetary policy needs to be tightly controlled because if they become unbalanced, it can prolong the “economic agony” being experienced by the country.
It was not very long ago that the Government was saying that public sector pay awards above 5% would add to inflation and cause the Bank of England to tighten monetary policy as a pay/price spiral developed.
In the past few days, pay increases of between five and seven per cent have been announced while the Bank of England recently raised interest rates by fifty basis poin...