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Article: Defending the great prize of price stability ; BUSINESS
- Article from:
- The Independent (London, England)
- Article date:
- May 29, 2007
- Author:
CopyrightCopyright 2007 The Independent - London. Provided by ProQuest LLC. (Hide copyright information)
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One of the remarkable -features of the past few years has been
the dramatic reduction in inflation rates around the world.
Admittedly, you can find a few outliers here and there - Zimbabwe,
for example, has an inflation rate of 3,713.9 per cent (it's great
to see accuracy to one decimal place on Zimbabwe's statistical
website) - but, for the vast majority of countries, price stability
is now a reality.
When, therefore, inflation shows signs of misbehaving, we start
to worry. Just over a month ago, Mervyn King, the Governor of the
Bank of England was obliged to write a letter to the Chancellor