UK Fiscal and Monetary Policies 'Out of Step': Blinder

The video discusses the current economic situation where central banks are adopting a hawkish stance, while fiscal policies, particularly in the UK, are not aligned, leading to inflation concerns. It highlights the UK's fiscal expansion amidst rising interest rates by the Bank of England, drawing parallels with historical instances like the Volcker-Reagan era in the US, where conflicting fiscal and monetary policies led to high interest rates.

What impact does the text suggest fiscal stimulus has on inflation?

In what way does the text indicate that the UK is 'out of step'?