by Jim Rose in economic history, macroeconomics, monetary economics

Many of the Twitter Left who voted in Jeremy Corbyn to lead the British Labour Party into what will be a self-inflicted electoral oblivion have no adult memory of paying high mortgage payments when there was high inflation.

Source: House Prices Data Download | Nationwide.



Those who have escaped the overweening conceit of youth still have raw memories of high inflation and high mortgage payments and that was when housing was much, much cheaper.

Source: House Prices Data Download | Nationwide.



An excellent wedge issue for the Tories on the 2020 general election will be even under rock bottom interest rates housing affordability is in crisis.

Source: Interest rates in the UK since 1694. Download the data and see it visualised | Business | The Guardian



Imagine what will happen if even moderate inflation were to return. There is no buffer left in the budgets of middle class homebuyers to pay much more if there were to be a People’s quantitative easing.