The latter episodes have typically been associated with periods of rapid technological th  th  th  change, as after the three industrial revolutions of the mid-18 , mid-19 and mid-20 centuries. In each case, there was a significant lag between the arrival of new technologies and their impact on productivity. Rates of technological diffusion were relatively slow and sedate. This is typically felt to have reflected the time it takes for new technologies to find widespread use and become General Purpose Technologies (GPTs). 34  After the first Industrial Revolution, it took around 70-100 years for technological  diffusion to occur, GPTs to emerge and TFP and living standards to rise. 35  Subsequent industrial revolutions have also seen a lag between the emergence of new technologies and their impact on productivity. But there is evidence this diffusion lag may have shortened. Comin and th  th  Mestieri (2014) estimate the diffusion lag during the industrial revolutions of the late 19 and 20 centuries to have been 20-30 years, roughly a third of that during the first industrial revolution. This may have reflected increased flows of labour, capital, ideas and information between firms, regions, sectors and countries. Table 1 looks at average rates of UK TFP growth over the past 2000 years. It tells a tale of long waves of productivity stagnation and innovation. The historical data do not reject either hypothesis. Table 1 also puts into historical perspective the UK’s recent productivity slowdown.
As we recognize in the sensitivity and risk scenarios of this MP Report, this is one possible outcome and its implications for the economy should be carefully monitored. While this is a matter in progress that we must follow closely, inflation has remained high for a long period of time and continues to be a complex and high-impact problem. The costs of this situation are evident. We have all felt the effects of rising prices in our daily lives, and a part of the population has suffered the hardest. Inflation introduces risks and distorts the information contained in prices, thus affecting investment, growth and employment. It is not possible to contemplate sustained growth in employment and activity if inflation is not kept under control. Therefore, bringing inflation back to the 3 percent target is an unavoidable task. I want to insist that, even if total inflation is on a downward path and will soon return to single-digit figures, the problem has not been solved. The convergence of inflation to 3% has not yet been consolidated and as long as it remains above that figure, the task of the Central Bank will not be complete. The causes of inflation have been discussed at length. The main one was the excessive increase in spending that led to the liquidation of social security savings and across-the-board fiscal transfers. In addition, there was the pandemic and its consequences on the local economy and in global production chains, plus the effects of the war in Ukraine.