Inflation phobia, myths and dogma exacerbate policy responses*

Anis Chowdhury and Jomo Kwame Sundaram

Review of Keynesian Economics, 2023, vol. 11, issue 2, 147-171

Abstract: This article offers an alternative narrative on contemporary inflation and policy responses to it. It argues policy responses to inflation have been driven by unfounded beliefs underlying current inflation myths and phobia. These are rooted in neoliberal ideology and dogma, especially influential since the neo-classical counter-revolution against Keynesian macroeconomics. They prevent better understanding of the nature and causes of inflation, leading to inappropriate policy responses exacerbating the situation. Misdiagnoses, policy confusion and anti-labour bias are exposed before offering an alternative narrative and concluding remarks.

Keywords: inflation targeting; central bank independence; growth; monetary policy; neoliberal (search for similar items in EconPapers)
JEL-codes: B22 B52 E12 E31 E58 E65 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:elg:rokejn:v:11:y:2023:i:2:p147-171

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