Something has to give. We are caught in an out-of-control inflationary spiral and we have only ourselves to blame. On this one, Gordon Brown may be innocent. If we are to retain any hopes of economic stability we need to arrest this rampant upward trend in consumption and prices.

Tuesday was my daughter’s second birthday. Because we want the best for her, we gave her a set of four mini-dolls (£5.99) and a new pink drinking flask (£1.99). On reflection, the flask may have been overdoing it. Last year we got away with giving her nothing at all.

Don’t worry. We are not depriving her. We just knew that she would receive presents from family and friends, and it was up to us to do our bit to bring some restraint to the RPI.

Yes, the Ridiculous Present Index needs urgent attention.

Does Father Christmas exist? I have his mobile number

There are good reasons to keep the old boy around

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We are facing hyperinflation in the expense and quantity of gifts and in children’s expectations. A friend discovered that her daughter was embarrassed to invite friends home because she didn’t have the most basic of toys: a PlayStation. Thinking of getting a PlayStation? That will be £300, thank you. When I was 14, in 1983, I got a Christmas gift of a Space Invaders computer game that cost £25. In today’s money that would be £60. When did it become routine to spend five times that on a teenager’s present?

The signs of the sickness in the gift economy are clear. At birthdays and Christmas, kids rip the paper off present after present, barely registering what is inside before casting the contents aside. At my son’s fourth birthday party his friends gave him more generous presents than we had. Even after a major toy clear-out, we still had so many that they lie forgotten at the bottom of piles of toy scree. How about a deal whereby birthday party presents are restricted to books? They are reasonably priced, don’t take up much room and can be easily exchanged.

One of my nephews once sternly rebuked me because a previous party for my son was “rubbish! No pass the parcel, no entertainer and no goody bags”. On the subject of pass the parcel: when did it become routine for there to be a sweet between each layer of wrapping paper? And when did those sweets turn into small gifts? As for the goody bags, well, often the treats that my son is sent home with are more expensive than the present he took to the party.

There is a backlash. Madonna and Guy Ritchie say there will be no Christmas presents in their house. That is unnecessarily extreme. I am tempted by the approach taken by parents who ask on birthday party invitations for no presents. But it seems very tough on the kid to be the one in the class who doesn’t get gifts from their peers. I’ve heard of parents putting the famous Oxfam goats in goody bags. That, surely, is a posturing too far.

A colleague often takes presents intended for her children and puts them in a drawer for regifting. In our family we are training the grandparents to show restraint. With Christmas bearing down on us like a Chinese containership at full throttle, I have issued firm warnings about not repeating the sins of their parents. I have vivid memories of my father’s groans as he watched my grandparents arrive on Christmas Day and stack the hall so high with presents that he was lost behind the wall of packages and had to retreat to the kitchen with a bottle of claret (that was his excuse anyway). Overindulgence and spoiling at Christmas isn’t new. But the rate of spending is greater than ever. In theory, cheap toys from China should mean that we spend less. But the reality is that we buy more toys and have become accustomed to splashing-out on expensive high-tech kit. The average shopper is expected to spend £706 on presents this year, up 7 per cent on last year.

I’m not suggesting that we scrap presents or give only gifts made from items from the recycling bin. This is a call for restraint. I have been lowering expectations by explaining to my son that he won’t be getting a Scalextric like the one he saw in Hamleys because Father Christmas always makes executive decisions about what children should have and four-year-olds don’t get Scalextric. The problem is that someone in his class is bound to get it – then the upward pressure begins.

One friend has set a £20 limit on gifts for all her extended family. This sounds sensible. PreChristmas pacts are also helpful. My sister and I have decided we won’t buy presents for each other, or each other’s spouses, just the kids. One gift, however, that nobody should be without, is a copy of the works of John Maynard Keynes. He has some very useful thoughts on demand, supply and inflation.

Good toys? It’s child’s play

— Look for a toy that is 10 per cent toy and 90 per cent child. A lot of toys direct the play activity by talking to children or asking them to press buttons. Find a toy that doesn’t command the child.

— Toys are meant to be platforms for play – they should be props not directing play.

— If it’s a toy that asks your child to supply one thing, such as fill in the blank or give one right answer, it is not allowing children to express creativity.

— Look for something that can be taken apart and remade, that builds their imagination.

— See if the toy promises brain growth – read the box. If it’s telling you that your child is going to be smarter or bilingual it’s a red flag.

— Does the toy encourage social interaction? It is fine for your child to have alone time, but it is great for them to be with others. Look to see if more than one child can play with the toy.

Compiled by Roberta Golinkoff and Kathy Hirsh-Pasek, authors of Einstein Never Used Flashcards

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