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New Attitudes About Inflation

Author

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  • Philip Arestis
  • John McCombie
  • Warren Mosler

Abstract

The authors point out a rarely considered fact about monetary policy. Ironically, central banks now tolerate inflation that is faster than the rise in wages. Workers pay the price. In this piece, the authors analyze the new focus on core inflation, and the politics involved, and point out that workers are bearing more of the burden than is realized.

Suggested Citation

  • Philip Arestis & John McCombie & Warren Mosler, 2006. "New Attitudes About Inflation," Challenge, Taylor & Francis Journals, vol. 49(5), pages 33-52.
    • Handle: RePEc:mes:challe:v:49:y:2006:i:5:p:33-52
    DOI: 10.2753/0577-5132490503
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    References listed on IDEAS

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    1. Alan S. Blinder & Ricardo Reis, 2005. "Understanding the Greenspan standard," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Aug, pages 11-96.
    2. Joanne Cutler, 2001. "Core Inflation in the UK," Discussion Papers 03, Monetary Policy Committee Unit, Bank of England.
    3. Alan S. Blinder & Ricardo Reis, 2005. "Understanding the Greenspan standard," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Aug, pages 11-96.
    4. Stephen G. Cecchetti, 1997. "Measuring short-run inflation for central bankers," Review, Federal Reserve Bank of St. Louis, issue May, pages 143-155.
    5. William R. White, 2006. "Is price stability enough?," BIS Working Papers 205, Bank for International Settlements.
    6. Alan Mankikar & Jo Paisley, 2004. "Core inflation: a critical guide," Bank of England working papers 242, Bank of England.
    7. Smith, Julie K, 2004. "Weighted Median Inflation: Is This Core Inflation?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(2), pages 253-263, April.
    8. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
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