Chapter I. The Home Economy

Since we last reported, the most important economic event has of course been the re-introduction of a form of incomes policy as set out in the White Paper ‘The Attack on Inflation’. The publicity surrounding the introduction of the new policy has however served to mask the startling nature of recent developments in the ‘real’ economy—startling both in relation to past experience and, unfortunately, in relation to our May forecast. They suggest that, so long as the £6 pay limit is generally held to, the focus of concern is now likely to shift rapidly away from inflation and the balance of payments and towards unemployment.