ABSTRACT
Author inflation experience in the United Kingdom in the past decade or so affords a rich variety of economic pathologies. People discuss a 'proximate accounting' of inflation (measured by the consumers' expenditure deflator), by way of introduction to sections, where people examine the evolution of ideas about acceptable explanations of price and wage developments. People consider first the results obtained for the equation determining the inflation expectations term. As well as reviewing the standard explanation of inflation in terms of the econometric work on both wage and price equations, people presented a system of our own incorporating elements of both. Finally, people can see that the rationalization of monetary targets offered by the Bank of England has something in common with the early 'Keynesian' thinking about inflation and incomes policy, which people identified with Kalecki, Robinson and Worswick, among others.
