Swimming upstream
How do you solve a problem like inflation?
FINANCE REPORT: HOW TO BEAT INFLATION
Jay Elwes
The term “conventional wisdom” is often attributed to Galbraith, a term he used to denote “the ideas which are esteemed at any time for their acceptability.” One such idea is that quantitative easing (QE) has caused a huge spike in the value of UK assets, not least housing.
But as Andy Davis points out here (see p2) once you strip out the effects of inflation, that conventional wisdom looks quite wrong. Research shows that, between 2007 and 2017, once the effects of inflation are stripped out, house prices fell in 58 per cent of council wards, despite QE.