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Price and Prejudice: A Note on the Return of Inflation and Ideology

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  • MatÍas Vernengo
  • Esteban Ramon Perez Caldentey

Abstract

The current debate on the causes of inflation is dominated by a particular view of what caused the inflationary acceleration in the 1970s, the so-called Great Inflation. In this view inflation is always and everywhere a demand phenomenon and requires contractionary monetary policy to be kept under control. The alternative view put forward by many heterodox authors emphasize what might be termed the oligopolistic view of inflation. In this paper we trace the limitations of both views for the center and the periphery.

Suggested Citation

  • MatÍas Vernengo & Esteban Ramon Perez Caldentey, 2023. "Price and Prejudice: A Note on the Return of Inflation and Ideology," Working Papers PKWP2302, Post Keynesian Economics Society (PKES).
    • Handle: RePEc:pke:wpaper:pkwp2302
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    File URL: https://www.postkeynesian.net/downloads/working-papers/PKWP2302.pdf
    File Function: First version, 2023
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    References listed on IDEAS

    as
    1. Santiago José Gahn, 2020. "Is There a Declining Trend in Capacity Utilization in the US Economy? A Technical Note," Review of Political Economy, Taylor & Francis Journals, vol. 32(2), pages 283-296, April.
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    More about this item

    Keywords

    Center-periphery; conflict inflation; corporate power; excess demand; supply-side shocks;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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