Conflict theories on inflation: a note

Nicolás Cachanosky and Emilio Ocampo

No 887, CEMA Working Papers: Serie Documentos de Trabajo. from Universidad del CEMA

Abstract: Recent inflationary episodes in advanced economies have reignited interest in Conflict Theories of Inflation (CTI), which attribute price level increases to conflicts over income distribution rather than monetary factors. These heterodox perspectives, rooted in Marxist and post-Keynesian traditions, emphasize the roles of labor-capital tensions, corporate pricing strategies, and broader sociological struggles. This brief note evaluates the theoretical foundations of CTI and examines their policy implications. It highlights how measures inspired by CTI historically result in higher inflation and lower economic growth. The analysis concludes with a critique of CTI’s reductionist framing and a call for policies grounded in a balanced understanding of monetary and conflict dynamics.

Keywords: Conflict; inflation (search for similar items in EconPapers)
JEL-codes: E31 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2024-12
New Economics Papers: this item is included in nep-cba, nep-mon and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:cem:doctra:887

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