IDEAS home Printed from https://ideas.repec.org/a/taf/revpoe/v9y1997i4p381-393.html
   My bibliography  Save this article

Inflation in the Transition Economies: the post-Keynesian view

Author

Listed:
  • Andrej Susjan
  • Marko Lah

Abstract

The article deals with the relevance of post-Keynesian theory of conflict inflation for the transition economies. While the conflict inflation theory does not have any explanatory tower for the performance of socialist economies and for their immediate post-socialist behaviour. it becomes relevant in later phases of their transition. The reason lies in the development of labour market institutions and in the establishment of collective bargaining. The inflation rate is determined by the real wage aspiration gap and by the bargaining power of the capital and labour side. The pervasive role of the state in setting target wage guidelines and a weak position of employers' organizations and trade unions as typical features of transitional tripartism lead to a relatively low rate of conflict inflation. However, this type of inflation is not responsive to monetarist anti-inflationary measures, which successfully cured the hyperinflationary tendencies in early transitional stages. Conflicting-claims inflation requires a more delicate approach. based on incomes policy measures and growth incentives.

Suggested Citation

  • Andrej Susjan & Marko Lah, 1997. "Inflation in the Transition Economies: the post-Keynesian view," Review of Political Economy, Taylor & Francis Journals, vol. 9(4), pages 381-393.
    • Handle: RePEc:taf:revpoe:v:9:y:1997:i:4:p:381-393
    DOI: 10.1080/09538259700000038
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000038
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09538259700000038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Davidson, 1994. "Post Keynesian Macroeconomic Theory," Books, Edward Elgar Publishing, number 124.
    2. Thomas I. Palley, 1996. "Post Keynesian Economics," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37412-6, March.
    3. Paul Davidson, 1991. "Controversies in Post Keynesian Economics," Books, Edward Elgar Publishing, number 121.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sébastien Charles & Jonathan Marie, 2016. "Hyperinflation bulgare de 1997 : transition, fragilité bancaire et change," CEPN Working Papers 2016-13, Centre d'Economie de l'Université de Paris Nord.
    2. Sébastien Charles & Jonathan Marie, 2017. "Bulgaria’s hyperinflation in 1997: transition, banking fragility and foreign exchange," Post-Communist Economies, Taylor & Francis Journals, vol. 29(3), pages 313-335, July.
    3. Marie, Jonathan, 2014. "Hyperinflation argentine de 1989 : une interprétation post-keynésienne," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 15.
    4. Sébastien Charles & Jonathan Marie, 2021. "How Israel avoided hyperinflation. The success of its 1985 stabilization plan in the light of post-Keynesian theory," Review of International Political Economy, Taylor & Francis Journals, vol. 28(3), pages 528-558, May.
    5. Kulesza, Marta, 2017. "Inflation and hyperinflation in Venezuela (1970s-2016): A post-Keynesian interpretation," IPE Working Papers 93/2017, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    6. Marie, Jonathan, 2011. "Quelle trajectoire macroéconomique adoptée par l’Argentine depuis la crise de 2001 ? Enjeux et limites de la stratégie actuelle," L'Actualité Economique, Société Canadienne de Science Economique, vol. 87(1), pages 85-113, mars.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Heise, Arne, 2018. "Postkeynesianismus: Ein heterodoxer Ansatz auf der Suche nach einer Fundierung," ZÖSS-Discussion Papers 69, University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS).
    2. Eckhard Hein, 2005. "Money, Interest, and Capital Accumulation in Karl Marx’s," Method and Hist of Econ Thought 0501002, University Library of Munich, Germany.
    3. Hein, Eckhard, 2002. "Money, interest, and capital accumulation in Karl Marx's economics: A monetary interpretation," WSI Working Papers 102, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    4. Hein, Eckhard & Dodig, Nina & Budyldina, Natalia, 2014. "Financial, economic and social systems: French Regulation School, Social Structures of Accumulation and Post-Keynesian approaches compared," IPE Working Papers 34/2014, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    5. Chris Doucouliagos, 1997. "Unemployment and Workers' Control," Review of Political Economy, Taylor & Francis Journals, vol. 9(2), pages 151-179.
    6. Giuseppe Fontana & Alfonso Palacio-Vera, 2002. "Monetary Policy Rules: What Are We Learning?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 24(4), pages 547-568, July.
    7. Heise, Arne, 2019. "Post-Keynesian Economics - Challenging the Neo-Classical Mainstream," MPRA Paper 99280, University Library of Munich, Germany.
    8. Michael J. Radzicki, 2003. "Mr. Hamilton, Mr. Forrester, and a Foundation for Evolutionary Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 37(1), pages 133-173, March.
    9. Eckhard Hein, 2006. "Money, interest and capital accumulationin Karl Marx's economics: a monetary interpretation and some similaritiesto post-Keynesian approaches," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 13(1), pages 113-140.
    10. Hein, Eckhard, 2004. "Money, credit and the interest rate in Marx's economic. On the similarities of Marx's monetary analysis to Post-Keynesian economics," MPRA Paper 18608, University Library of Munich, Germany.
    11. Rodríguez-Fuentes, Carlos Javier & Hernández-López, Montserrat, 1997. "Análisis de diferencias estructurales interregionales determinantes en el impacto de la política monetaria," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 7, pages 141-157, Junio.
    12. Jochen Hartwig, 2006. "Explaining the aggregate price level with Keynes's principle of effective demand," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 469-492.
    13. Piero Ferri & Anna Maria Variato, 2007. "Macro Dynamics in a Model with Uncertainty," Working Papers (-2012) 0704, University of Bergamo, Department of Economics.
    14. Robert E. Prasch, 1995. "Reassessing Comparative Advantage: The Impact of Capital Flows on the Argument for Laissez-Faire," Journal of Economic Issues, Taylor & Francis Journals, vol. 29(2), pages 427-433, June.
    15. Marangos, John, 2006. "Developing a civilised society in transition economies: The Post Keynesian paradigm," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(4), pages 660-681, August.
    16. M. Lopreite, 2012. "The endogenous money hypothesis and securitization: the Euro area case (1999-2010)," Economics Department Working Papers 2012-EP02, Department of Economics, Parma University (Italy).
    17. Arne Heise & Toralf Pusch, 2020. "Introducing minimum wages in Germany employment effects in a post Keynesian perspective," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1515-1532, November.
    18. Michaël Lainé, 2016. "Uncertainty, Probability and Animal Spirit [Incertitude, probabilités et esprits animaux]," Post-Print hal-02942874, HAL.
    19. Giuseppe Fontana & Bill Gerrard, 2006. "The future of Post Keynesian economics," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 59(236), pages 49-80.
    20. Josef Arlt & Milan Guba & Stepan Radkovsky & Milan Sojka & Vladimir Stiller, 2001. "Influence of Selected Factors on the Demand for Money 1994-2000," Archive of Monetary Policy Division Working Papers 2001/30, Czech National Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:revpoe:v:9:y:1997:i:4:p:381-393. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRPE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.