The role of prices and inflation in neo-classical ("mainstream") economic theory is awkward for us non-mainstream inclined. The price level is simultaneously of critical important for explaining activity as well as being an outcome of other parts of the economy. This makes the subject of inflation extremely awkward for my planned book on business cycles -- as I am pushing the subject of inflation to a later book. Instead, I only aim to have a short chapter explaining the absence of inflation analysis. This article are some preliminary comments that I hope to work into that chapter....Bond Economics
Coming To Grips With Neoclassical Views On Inflation And The Cycle
Brian Romanchuk
The political importance of price inflation is that price inflation is a rather obvious measure of how much the victims of our current unjust fiat and credit creation systems are being looted and thus is an indicator of potential political instability.
ReplyDeleteNot that deflation does not steal too (contrary to what Austrian Economists may say).