The theory of inflation seeks to explain why inflation occurs and
why its rate varies, to explain the co-movements betwen the
inflation rate and other variables and to permit the design of
mechanisms capable of delivering an optimal inflation path.The
Theory of Inflation presents in one volume a comprehensive
description of the historical inflation record, surveys the current
state of knowledge on the fundamental forces that cause inflation
and the mechanisms that propagate it, and examines the costs of
inflation and the problems of achieving price stability. Professor
Parkin's selection draws both upon the contribution of mainstream
economists - whose work has been based on market demand and supply
- and a new generation whose work has emphasized the importance of
technology and preferences. This volume, as the introduction
states, indicates that there is much of value to be learnt from
both approaches.
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