Inflation Dynamic: Global Positive Economic Analysis

This book uses time series data from 1960 for 42 countries to explain inflation dynamics and test theoretical models about the long and short run relationships between money and prices, money growth and inflation, and fiscal policy. It also examines why policymakers in inflation-targeting countries failed to anticipate the recent rise in inflation and the fallibility of the Modern Monetary Theory's policy prescription to reduce inflation by raising taxes.

Format: Hardback
Length: 333 pages
Publication date: 16 June 2023
Publisher: Taylor & Francis Ltd

This comprehensive book delves into the intricate dynamics of inflation, utilizing a time series dataset spanning from 1960 to 42 diverse countries. These countries exhibit remarkable variations in their historical, cultural, social, political, institutional, and economic aspects. The selection of these countries is primarily driven by the availability of data, covering the Middle East and North Africa (MENA) region, Africa, Asia, the Caribbean, Europe, Australasia, and the United States.

During the 1970s and 80s, developed countries experienced double-digit inflation, prompting central banks to implement successful strategies to stabilize it. These strategies involved anchoring inflation expectations for decades, a practice that has remained in place until present. The book explores the long and short-run relationships between money, prices, money growth, inflation, the output gap, fiscal policy, and inflation, employing a range of parametric and non-parametric methods. It also sheds light on why policymakers in inflation-targeting countries, such as the United States, were unable to anticipate the recent surge in inflation. Furthermore, it examines the limitations of the Modern Monetary Theory's policy prescription to reduce inflation through tax increases.

This book stands out as a unique and innovative contribution to the field, appealing to a wide audience including students, academics, researchers, policy makers, analysts in corporations, private and central banks, and international monetary institutions. Its comprehensive nature and insightful analysis make it an invaluable resource for understanding the complex dynamics of inflation and its implications for global economic stability.

Weight: 820g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032465449