Critical Political Economy of Inflation

The book provides an original critical, political economist’s introduction to the meaning, causes and consequences of inflation. It argues that it is too easy to think of inflation as a ‘thing’, when price indexes are not only complex statistical but also social constructions. It provides a historical contextualisation of price changes before a detailed engagement with rival theories of inflation’s causes. Emphasising inflation’s complexity and social character, the book both criticises and develops the kernels of truth in existing accounts in moving towards a more satisfactory synthesis. The book finally turns to neglected questions of inflation’s consequences, contesting prevailing claims that it is a general evil. Inflation tends to foster faster growth and reduced inequality.