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- Title
A Latticework of Inflation Models.
- Authors
Mayer, Thomas
- Abstract
Economists have repeatedly developed various theories for the origin of inflation and claimed that these theories were always valid everywhere. But history has shown that the theories – although they are useful – were only valid during certain time periods and under special circumstances. What is therefore needed is a system that assigns the various explanations of inflation to the specific circumstances for which they are particularly suited. This paper sets out such a system. Borrowing from Charlie Munger's (2005. Poor Charlie's Almanack. Stripe Press), I call it a "latticework of inflation models". In the first section 1 map the various inflation theories and then discuss and relate them to each other in the following sections. I find that during and after the pandemic several drivers of inflation were at work, so that several theories of inflation instead of just one allow a more comprehensive explanation of the inflation experienced during this period. The "latticework of inflation models" is also better suited than just one model for investigating the outlook for inflation.
- Subjects
PRICE inflation; MONETARY policy; MONEY supply
- Publication
Economists' Voice, 2024, Vol 21, Issue 1, p7
- ISSN
2194-6167
- Publication type
Article
- DOI
10.1515/ev-2024-0028