Andrew Lilico- writing yesterday - is very critical of the Bank of England. Along with many Austrian economists he sees the failure of the Government to stop inflation as a betrayal of our Country. Of course, this is true on one level, the current government and any future ones are reduced to impoverishing the population as they can't bring themselves to shrink the Government nor ween the population off unaffordable social benefits.
The main accusation though is that the Bank of England is not helping by ignoring inflation which we import - this in turn offsets any gains we may make in exports. However, long-term, perhaps we need to make some adjustments. Look at the graphs below, global population is expanding rapidly and resources are being consumed ever faster - faster than we can produce them at current prices. Of course, in food terms Malthus and his ilk have been proved wrong too many times. But you can't grow Oil, Rare Earth Minerals or Uranium. Technology will help mankind to survive, but in the next 20-30 years the Earth will experience the peak human population boom. This will mean prices for everything increase as more people compete for limited production. Again, capitalist market economics will ensure we will find enough ways to extract resources, but the real price will have to rise to get them to market - so implying significant real terms inflation.
It is not the end of the world, but it does mean that inflation is with us for a long time to come (ignoring any small deflationary dips caused by recessions along the way) - if this is the case, what should our macro-economic policy be? There is certainly a danger with fiat currencies of the wealth of nations being decimated in short order by poor policy decisions. Arguing for a pure anti-inflationary stance as the starting point of domestic policy can't be the right place to start from for the long-term.