And, back then, the main opposition to Keynes came from Germany, where hyper-inflation, not depression, had been the formative experience. Those policymakers who were in charge in the 1950s and 1960s had the Great Depression as their formative economic experience: for them, Keynes was the answer, even if many of his ideas are not considered mainstream today. Those of us in our forties and fifties are obsessed with inflation because inflation was the formative economic experience of our childhood and teenage years. Everyone these days believes in free and open markets, but that certainly wasn't the view 30 years ago. After all, it was only in 1979 that the UK controversially abolished exchange controls and, throughout the 1980s and early 1990s, many European countries persisted with the use of capital controls of one sort or another.Put another way, we're all children of our times. I'm not suggesting that all economists are drug abusers - even if their forecasting records suggest that, at times, they really must be smoking something - but once-controversial views become acceptable, and once-acceptable views become laughable.No one these days would advocate a full-employment policy as the centrepiece of a macroeconomic strategy but that's what everyone used to do in the 1950s and 1960s. I have nothing against the Stranglers - in fact, I rather like them - but there's something slightly odd about children buying their fathers an album with songs about the perverted thoughts of dirty men ("Peaches") and, if the lyrics mean anything at all, the use of heroin ("Golden Brown").The same is true in economics.

Today, though, Frankie offers no more than a bit of 1980s nostalgia. And, the other day, I noticed a poster on the Underground advertising a "greatest hits" compilation from the Stranglers as a possible gift for Father's Day. Frankie Goes to Hollywood's Relax was eventually banned when Mike Read, a BBC Radio 1 DJ, read the lyrics and realised that Frankie's idea of relaxation was more than just a nice cup of tea followed by an afternoon nap. It's funny how the controversial gradually gets sucked into the mainstream. You only have to think about the history of pop music to recognise that the boundaries of acceptability gradually shift over time. Lucy in the Sky with Diamonds was banned when it was first released, yet no one today seems too bothered about John Lennon's homage to hallucination.

"Furthermore there are emerging signs that the 'mini boom' in the housing market could be beginning to peter out," he said.. "Both moves should dampen the committee's fear of inflation and keep [rates] on hold," John Butler, the chief UK economist at HSBC, saidHoward Archer, the chief UK economist at Global Insight, said doubts over the longer-term prospects for consumer spending in the wake of a rising tax burden, soaring utility bills, high petrol prices and rising unemployment would keep rates on hold for some time. Its inflation index rose sharply on April's surge in oil prices to a record high. Peter Hemington, a partner at the firm, said: "The most recent available data points to a possible rate rise at some point this year."Douglas McWilliams, the chief executive at the analysts CEBR, which worked on the survey, said: "The MPC may need to consider a rate rise later in the year in order to cool prices and keep inflation at a manageable level."However, all 40 economists polled by Reuters before the weekend expected the MPC to leave rates on hold at 4.5 per cent for the 10th month in a row.Many cited the 2.7 per cent rise in the pound's effective exchange rate in the month since it compiled its May forecasts, and the sharp drop in equity prices. "But given that Europe is our most important export market and that its largest economy, Germany, is facing tax rises, I think a large increase in rates in the rest of the EU would probably be more damaging than a move here," he said.In a separate report, the accountancy firm BDO Stoy Hayward said its latest trends report highlighted an upturn in economic growth on the back of increased consumer spending and a buoyant housing market.Optimism among business rose to its highest level in the history of the survey.

"In the labour market, on the high street and at the factory gates the signs of inflationary pressure are extremely limited, so any move would be premature," he said.Asked whether a rise in UK rates or a possible half-point increase by the European Central Bank on Thursday would be more damaging for British businesses, Mr Radley said it was a "hard call". Investment intentions remained positive although well below the levels of the 1990s.Stephen Radley, the EEF's chief economist, said manufacturers were making the most of the global economic boom - but he urged the MPC not to derail the recovery at UK factories with a rate rise. Firms were able to raise prices, and took on new staff for the time since the start of 2005. However, Professor Nickell has now left the MPC and been replaced by David Blanchflower, who has given no indication about how he is inclined to vote.The EEF, a manufacturing trade body, said its survey of more than 1,100 companies showed that output and orders had expanded at a "rapid" pace.The number of firms reporting a rise in output over the latest three months exceeded those witnessing a fall by 22 per cent - the highest balance since the end of 1996.Orders also rose, driven by a widespread surge in orders from overseas, especially the rest of the Europe Domestic orders, however, were relatively sluggish. The Bank's Monetary Policy Committee is certain to leave rates on hold but analysts will be alert to any signs that its members are leaning towards the need for a rise. The MPC was split three ways last month, with David Walton calling for a quarter-point rise and Stephen Nickell for a cut.