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The UK Economy

Marie Sheldon and Garry Young

National Institute Economic Review, 1997, vol. 161, 6-25

Abstract: The economy is now operating at close to trend levels after 5 years of recovery from the deep recession at the beginning of the 1990s. Over this period output has grown by an average annual rate of 2.9 per cent but growth accelerated last Autumn to around 1 per cent per quarter, a rate well in excess of that which is sustainable in the long run. The key question at the current conjuncture is whether the necessary slowdown in the rate of growth will come about quickly enough that inflation remains under control or so abruptly that the economy is pushed back into another recession.

Date: 1997
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