In recent years, inflation has been considerably higher in the UK than in comparable countries like France, Germany and the US. Why?

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Persistent high inflation rates have always been a symptom of structural problems in an economy and have little to do with external factors. Every year, the amount of money in circulation grows faster than the level of economic activity. Supply always matches demand in a market economy, so growth differences between the two will inevitably lead to price increases. “Cost of living crisis” is a dramatic term for this dynamic running away.

Unfortunately, runaway prices are not just a symptom but also the cause of many economic ills. A market economy is fuelled by the selfish but socially beneficial desire of people to become rich – improving their own outcome by offering something........

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