David McWilliams: The economics I learned are now wrong
Rapid disappearance of inflation has made workers poorer. And that’s not its worst effect
Why has inflation disappeared? And is it a good thing? Photograph: iStock
What if everything you know is wrong? Imagine what it would be like, had you devoted your professional life to a discipline governed by reasonably predictable rules, only to find out, 25 years later that the rules no longer applied?
Spare a thought for the traditional macroeconomist, who has seen this happen. But the changing economic rules also affect your pay packet, and not in a good way.