Education Information

multinationals enjoy and are also forced to take whatever prices the market pushes onto them.

At best, most of us, if we have an expectation of higher inflation in the future, might try to buy some durable goods sooner than we planned – buying a new TV now, rather than next year, for example. But this obviously is not an option for natural gas, or food, or petrol – all the things rising fastest in price right now. Managing the “expectations” of future inflation is a smokescreen to persuade workers to accept the tremendous income loss and transfer to profits that is taking place at present. It is also the reason that the Bank of England gives for putting up interest rates. We will see in the last section why this will hurt workers, in particular, very much.

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