UK CPI Inflation and Unemployment-NAIRU Gap (1953–2023) [Figure 5.23]
Figure 5.23 is a line chart that presents data on the UK economy from 1953 to 2023, designed to illustrate the country's economic evolution and policy responses to shocks over the broader 1950-2023 period. The vertical axis, scaled from -4% to 24%, plots two key variables: the CPI inflation rate and the unemployment gap (the difference between the unemployment rate and NAIRU). The chart reveals that while CPI inflation was highly variable with significant peaks, especially in the 1970s, the unemployment gap followed a more subdued and stable trend. The figure also serves as a guide, linking to supplementary charts on other UK macroeconomic variables.
0
1
Tags
Economics
Economy
Introduction to Macroeconomics Course
Ch.5 Macroeconomic policy: Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Related
UK Economic Eras as Illustrated by the Unemployment-Inflation Scatterplot (1950–2022) [Figure 5.12]
UK CPI Inflation and Unemployment-NAIRU Gap (1953–2023) [Figure 5.23]
Rethinking a Nation's Economic Strategy
The experience of persistent and high price increases during the 1970s prompted a significant re-evaluation of economic management in many countries. Which of the following statements best analyzes the core lesson from this period and the major policy shift that followed?
The Catalyst for Modern Monetary Policy
The experience of high and volatile price increases in the 1970s led many economists and policymakers to conclude that governments should more actively use monetary policy to fine-tune employment levels, even at the risk of higher inflation.
Inflation Targeting
UK Economic Stability in the Post-War Era (1950s-1960s)
The 1990s Shift Towards Central Bank Independence