If people are reluctant to pay taxes but demand social security and good roads, it is the shadow of the past. In brief, if people do not understand why elections are held and what is the state’s role, it is the shadow of the past. But, of course, in ten years a lot has been achieved. We have built up democratic institutions. Market economy functions. Private ownership has a solid foundation. Banks provide credit to people for new housing developments. But our current success should not be taken for granted. And we should also bear in mind that much needs to be done yet. The public has to understand the role and possibilities of the state and the government in the market economy. Everybody should feel responsible for their own welfare as well as their family’s and the state’s well-being. Our new generation should be able to cope with the complicated processes of the modern society much better than we did. In our efforts to achieve this goal it is impossible to underestimate the support provided by our partners. The Estonian society and politicians need partners with whom to exchange experience and from whom still to learn the fundamentals of the functioning civil society. At that, I would like to thank Konrad Adenauer Foundation for the work it has done and is doing in Estonia and elsewhere for the promotion of political co-operation, preservation and support of free democracies throughout the world, development and consolidation of the social market economy and respective values.
That Was The Week That Was was a popular TV programme which ran for two series in 1962 and 1963. That was the time when inflation was just starting to rise and although it averaged well below 5 per cent throughout the 1960s it picked up sharply in the early 1970s and didn’t fall back to below the MPC’s current 2% target until 1998 (Chart 10). Sources: ONS and Bank calculations. See The path to 2 per cent − speech by Silvana Tenreyro | Bank of England. See Shocks, uncertainty, and the monetary policy response- speech by Dave Ramsden I Bank of England 16 17  Bank of England  Page 16  2022 has been a very challenging year for the UK economy. Millions of households and businesses are experiencing great hardship as a result of the cost of living crisis. As a member of the MPC I am acutely conscious that our actions are adding to the difficulties caused by the current situation. The past history of the UK economy demonstrates the damage to households and businesses that would result if high inflation persisted. Unlike these earlier periods of high inflation, exacerbated by ineffective policy and policy frameworks, we now have a monetary policy framework which empowers us to take action. However challenging the short term consequences might be for the UK economy, the MPC must take the necessary steps in terms of monetary policy to return inflation to achieve the 2% target sustainably in the medium term.