Inflation was a significant political and economic problem. it generated a rebellion among the middle-class center constituency Conservatives. Macmillan was aware of the problems in the economy and it was during his reign that Treasury underlined inflation as a major economic problem in its 1956 White Paper The Economic Implications of Full Employment. For the most part of 1957, he concentrated on the strategies to reduce inflation by minimizing investment and public expenditure (Green 2004, p175).In 1958, he could not very well reconcile the problems of full employment with those of the stable prices. the middle way was to be gotten between deflation and inflation. In 1960, the problem of reconciling stable prices and full employment was still unresolved and Macmillan was warned of the inflationary consequences of the action (Green 2004, p177).Douglas-Home inherited many of the economic problems from his predecessor. However, he sought not to be involved with them partly because of the realization that he had his own limitations and partly due to the belief that the ministers should do their own work (Thomas 1998, p106).The Profumo affair was the much-publicized scandal during the premiership of Macmillan. The press blew it out of proportion and it made the government look like it might have to resign. The scandal involved John Profumo, the Minister for War. He had an affair with a model, Christine Keeler. the two had met during an osteopath named Stephen Ward. Christine was suspected of having an affair with a Russian official and it is at this time when a rumor began circulating that she had an affair with Profumo. The Labour raised the matter as a probable security risk (Roberts 2001, p273).Profumo denied having an affair with the model at the House of Commons but the press had stories about his sexual affair with the model and spies. Profumo was forced to resign and the press used the scandal.