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I'm not sure that there is much correlation between the two - the really bad years for inflation were '73 to '83 and oil revenues didn't really take off until '82 or so:

http://www.marketoracle.co.uk/Article4884.html

http://safalra.com/other/historical-uk-inflation-price-conve...

I'm obviously not an economist, so you could well be right!



I meant inflation of currency exchange, I should have stated that above.


Which is so bad as to cancel out any positive effect of the spending why?


Because it effectively killed UK exports.


Interesting point - thanks.




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