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The current debate on the causes of inflation is dominated by a particular view of what caused the inflationary acceleration in the 1970s, the so-called Great Inflation. In this view inflation is always and everywhere a demand phenomenon and requires contractionary monetary policy to be kept under control. The alternative view put forward by many h...
Context in source publication
Context 1
... does not imply that policies to mitigate the inequities associated with corporate power should not be implemented, of course, but policy initiatives like price controls are unlikely to work in the short run. 12 It is unlikely that those measures can counter the effects of the increase of commodity prices, when those take place like in the post-pandemic period, when the price of Brent Crude Oil went up by approximately 350 percent in international markets as shown in Figure 1. Note that the changes in the Consumer Price Index (CPI; left axis) in the U.S. follow closely the international price of oil (right axis), which is an exogenous variable, determined in international markets. ...
