As the economy stabilises from successive economic shocks, we are left with a sluggish economy with an increasingly limited ability to manoeuvre. To understand the state of the UK economy today and where it might go tomorrow, we need to focus 1) when will the economy recover from the inflationary shocks of the past few years and 2) will the legacy of those shocks impact our ability to grow into the future. To understand the first question, it’s helpful to compare how the UK experienced this shock relative to other similar countries. While the causes of inflation have been global in nature, the UK’s peak of 11 per ... (full story)