Time will tell whether or not the current British government’s policy of easing fiscal policy to boost the economy’s growth rate, when retail price inflation is currently running around 10 percent, will be successful.

The portents are not great.

Past initiatives which have pursued similar policies, most notably the Barber rush for growth of 1972, ended disastrously.

Given that it is almost certain that the Bank of England will continue to tighten monetary polic...