Interest rates, inflation and recession in the 80s vs now – are there lessons we can learn?

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Are there any lessons to be learnt from the financial turbulence of the 1980s? We take a look at the past to try and learn about the future.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

17 July 2023

When we think about the 1980s, it can conjure images of shoulder pads, fast cars, and Gordon Gekko from 1987’s ‘Wall Street’. But the 80s was a decade of immense structural change for the global economy and the UK.

The ‘big bang’ financial reforms made London a centre of finance. Inflation and economic growth were volatile, and the government’s exploration of privatisation of several national industries, like railways and mining companies, led to a wave of national strikes.

While the 2020s aren’t an exact copy of the 1980s, there are some similarities. But are there any lessons to be learnt to help navigate the current decade?

This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for