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The High Economic Cost of UK Disinflation (Early 1980s)

The process of reducing inflation in the UK during the early 1980s incurred a substantial economic cost. Specifically, bringing inflation down from 15% in 1980 to under 5% by 1984 was accompanied by a sharp rise in the unemployment rate from approximately 6% to nearly 12%.

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Updated 2026-01-15

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