Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/274244 
Year of Publication: 
2022
Series/Report no.: 
FMM Working Paper No. 82
Publisher: 
Hans-Böckler-Stiftung, Macroeconomic Policy Institute (IMK), Forum for Macroeconomics and Macroeconomic Policies (FMM), Düsseldorf
Abstract: 
The early stages of recovery from the recession induced by the COVID-19 pandemic have been accompanied by a marked increase in inflation in the US and elsewhere. Much has been made of this outcomes, and the economic distress associated with it, in popular discussion of the economy. This paper provides a Kaleckian conflicting-claims analysis of inflation during the post-COVID recovery, that distinguishes between rising wages, pandemic-related supply shocks, and corporate price-setting behaviour as sources of inflationary pressure. A key conclusion that arises from the co-determination of inflation and distributional outcomes in the Kaleckian framework is that distributional developments that have further disadvantaged working households, rather than inflation per se, are the chief source of recent economic distress - and should be the chief cause for concern among policy makers.
Subjects: 
Inflation
COVID-19
conflicting claims
wage share
income distribution
JEL: 
E02
E11
E12
E25
E31
E64
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
717.15 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.