Synopsis
A myth-busting guide to the ins and outs of inflation from two leading political economists
Since the 1970s, there has only been one playbook for fighting inflation: raise interest rates, thereby creating unemployment and a recession, which will lower prices. This simple story hides a multitude of assumptions about why prices go up and how policymakers can wrestle them back down—assumptions that are often wrong, damaging, and have little empirical basis. Prominent economists Mark Blyth and Nicolò Fraccaroli reveal why inflation happens, how we combat it and how it affects our lives. With accessible and engaging commentary and a good dose of humour, Blyth and Fraccaroli bring the complexities of economic policy and inflation indices down to earth.
They argue that 2021 marked the end of an era of relative price stability around the world. Now, climate shocks, changing demographics and geopolitical tensions are combining to create a more inflationary future—making a new paradigm for understanding inflation all the more necessary. Astute, timely and thoroughly engaging, Inflation is a must-read for anyone seeking to understand the forces shaping our economy.
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About the Authors
Mark Blyth is a political economist and professor at Brown University. He lives in Providence, Rhode Island.
Nicolò Fraccaroli is an economist at the World Bank and a visiting scholar at Brown University. He lives in Washington, DC.
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