During the 1960's and 70's European governments, instituted various wage and price controls to reduce inflation. As the inflation grew, Governments perceived it as a greater problem. Within the UK, in the 1980's as the inflation was reaching double figures, voters claimed that it was "public enemy number one." consequently the prime minister, Margaret Thatcher, adopted various extreme measures to combat inflation, which resulted in massive industrial, and political unrest, along with mass unemployment. But as a consequence of these measures, inflation was suppressed, which encouraged her double re-election. Inflation has been seen as a great problem, from public and governments alike, and as with Thatcher, successful anti-inflationary policy, can lead to political success, but is inflation as much a menace to the economy as it is perceived?
Inflation is perceived to be such a great problem, as everyone in the whole economy is directly affected by it, so observe the negative aspects of it. …
