Between 1992 and 2002, the UK experienced a period of benign economic growth. Known as the Nice (non-inflationary constant expansion) decade, it feels like a very long time ago. According to the Bank of England’s latest forecast, Britain today faces the opposite: high inflation and a recession. This grim prediction is why the Tory leadership contest is so grouchy; in these circumstances, there are no good fiscal options, only least-worst ones.
The world economy veers from one emergency to another, with the frequency of crises having intensified since 2008 and, particularly, since Covid. Lockdowns and pandemic disruption were rapidly followed by the Russian invasion of Ukraine, which is causing havoc in energy markets.
Added to this is the growing concern that the Russian invasion may make the Chinese more inclined to attempt a blockade of Taiwan. This would cause even more disruption than the Russia-Ukraine war, given that the island produces the majority of the world’s most advanced microchips, and it would hugely increase the risk of direct conflict between China and the US.
One of the foundations of the Nice decade was globalisation.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in