Comments by "Tony L" (@tlangdon12) on "The days when managing the economy is all about inflation should be over" video.

I think that we in the UK have to remain obsessed with inflation because of the scale of our public sector. The problem is that there is only a very weak link between inflation and tax receipts. In periods of high inflation, tax receipts don't rise as rapidly and this means that there isn't enough tax income to pay the higher costs experienced by the public sector. Richard suchhests that big inflation jumps are peaks, but they can do a lot of damage when that peak is two years long. Pensions, the NHS and basic civil services all risk becoming unaffordable if we don't get inflation down to near zero and keep it there. If the costs just keep increaseing, so will taxes have to keep increasing, and what happens when we reach 100% of GDP? It's not sustainable if inflation continued to have bouts when it gets out of hand.
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