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Sounds like someone want us to do their economy homework. :-)

Part of the earliest history of the period had to do with what England was doing early on in this period... Remember WWII? Well, England had a lot of reconstruction to do, and that never really adds to the Gross Domestic Product. It just replaces what should have already been there but wasn't because of the war. Next, we are talking about the aggregate of the entire nation, but on the individual level too. So look at the individuals and ask yourself, what were they doing to make money over this time? Hint: England is not known for their educational levels being all that high. As far as the relationship between inflation and GDP, ask yourself this...what does inflation really mean? How is it related to the buying ability of individuals and what do individuals need to do to keep up with inflation? Figure that out and you'll be able to compare and contrast England to the US on your final in your Comparative Political Science class too. Incidentally, this same question is being referenced in and about China today both by their internal governing bodies and various nations like the USA who are concerned about the monetary exchange rate. But most economists and political science people (as well as historians like me) agree that as the Chinese GDP goes up, and inflation goes up with it, the monetary exchange concerns will not longer be a concern because Chinese goods will no longer be cheaper within or outside China and the playing field for goods will be even once again.

Hope that helps get you on the right track.

14 years ago. Rating: 2
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