Inflation,Unemployment and Hysteresis: An alternative view |
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| Authors: | Antonella Stirati |
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| Institution: | Walter Eucken Institute , Freiburgpaper was presented at the 19th Annual Meeting of the History of Economics Society, George Mason University, Fairfax (30 May–2 June 1992). The author would like to thank Professor Warren J. Samuels and an anonymous referee for critical comments |
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| Abstract: | This paper integrates ideas concerning the influence of the interest rate on the rate of profits with an analysis of inflation and its relation with unemployment. Inflation is regarded, as in Kaleckian contributions, as resulting from inconsistent claims on income, but the approach taken leads to different conclusions concerning the effects of inflation (or deflation) on income distribution, and the circumstances giving rise to acceleration of inflation. The approach followed in the paper also provides explanations of phenomena that have appeared 'puzzling', particularly the association of different unemployment rates with stable inflation, and the persistence of high rates of unemployment. |
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