Understand - The Economy: 1. Inflation

What is inflation, why does it matter, and is someone to blame if it goes up? Understanding inflation will help you understand why your shopping is getting more and more expensive and why prices rarely seem to come down. Tim Harford explains why the inflation figure you see on the TV might not reflect the price rises you’re experiencing and economic historian Victoria Bateman tells us why having a boat load of silver coins isn’t always a good thing.

Everything you need to know about the economy and what it means for you. This podcast will cut through the jargon to bring you clarity and ensure you finally understand all those complicated terms and phrases you hear on the news. Inflation, GDP, Interest rates, and bonds, Tim Harford and friends explain them all. We’ll ensure you understand what’s going on today, why your shopping is getting more expensive or why your pay doesn’t cover your bills. We’ll also bring you surprising histories, from the war-hungry kings who have shaped how things are counted today to the greedy merchants flooding Spain with silver coins. So if your eyes usually glaze over when someone says ‘cutting taxes stimulates growth’, fear no more, we’ve got you covered.

Guest: Richard Davies, Professor of Economics at Bristol University

Producer: Phoebe Keane

Researchers: Drew Hyndman and Marianna Brain

Editor: Clare Fordham

Theme music: Don’t Fret, Beats Fresh Music

A BBC Long Form Audio Production for BBC Radio 4

Published on Thursday, 3rd November 2022.

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