Editing Stagflation (section)

==1976 Sterling crisis==
{{main|1976 sterling crisis}}
[[File:Uk inflation history.webp|thumb|UK inflation history]]
[[File:Uk bonds.webp|thumb|10 year UK bond <br /> Borrowing costs for debt and bonds were elevated from inflation as well]]
The United Kingdom experienced an outbreak of inflation in the 1960s and 1970s. As inflation rose, British policy makers failed to recognise the primary role of monetary policy in controlling inflation. They tried to use non-monetary policies and devices to respond to the economic crisis. Policy makers also made "inaccurate estimates of the degree of excess demand in the economy, [which] contributed significantly to the outbreak of inflation in the United Kingdom in the 1960s and 1970s."<ref name=BankofEngland2002 />

Stagflation was not limited to the United Kingdom. Economists have shown that stagflation was prevalent among seven major market economies from 1973 to 1982.<ref name="ReferenceA">{{cite journal|last1=Helliwell|first1=John|title=Comparative Macroeconomics of Stagflation|journal=Journal of Economic Literature|volume=26|issue=1|pages=1–28|date=March 1988|url=http://econpapers.repec.org/scripts/search.pf?ft=Comparative+Macroeconomics+of+Stagflation|jstor=2726607}}</ref> After inflation rates began to fall in 1982, economists' focus shifted from the causes of stagflation to the "determinants of productivity growth and the effects of real wages on the demand for labor".<ref name="ReferenceA"/>