Following last week's decision by the Bank of England to raise the UK interest rate to 3%, economic historian Dr George Maher argues the Roman Empire presents an exemplary model for controlling inflation and keeping interest rates steady, which they managed to do for 200 years?

George is the author of Pugnare: Economic Success and Failure reviewed by Ian Garner read it here Business Books: PUGNARE– Economic Success And Failure

George highlights how the Roman economy collapsed due to many of the factors which are hurting the UK economy today.

"With inflation currently pushing into the double digits, investors would be right to lament the Bank of England's miserly 3 per cent risk free rate.

"Compare this to investors in Ancient Rome who, for over two-hundred years, enjoyed low inflation, a risk free rate of return of 4 per cent, and the fruits of a sophisticated banking system. The secret to Ancient Rome's economic dream in the first and second century AD was that age-old recipe of prudent currency management, responsible Government spending, and a respect for investor confidence.

"Much like ours, the wheels eventually began to come off the Roman economic miracle when that reverence for investor confidence turned to complacency, public spending soared and inflation spiralled. Sound familiar?"