Cost-Push and Conflict Inflation

Thomas Palley

Chapter 11 in Post Keynesian Economics, 1996, pp 182-200 from Palgrave Macmillan

Abstract: Abstract Chapter 10 described the workings of demand-pull inflation. Such inflations were identified with persistent aggregate nominal demand growth, and operated under conditions in which the distribution of income between capital and labor was uncontested. This chapter develops the theory of conflict inflation, which may be viewed as the lineal descendant of the theory of cost-push inflation developed in the 1950s. The cost-push approach to inflation emphasized the causal role of rising costs in factor markets, which were then passed on as higher output prices. Conflict inflation follows this line of reasoning, but identifies the source of inflation as the struggle between workers and firms over the distribution of income. In terms of the model presented in Chapter 10, this amounts to recognizing the endogenous and contested character of the mark-up, m.

Keywords: Interest Rate; Market Power; Real Wage; Money Supply; Real Interest Rate (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-37412-6_11

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230374126

DOI: 10.1057/9780230374126_11

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().