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Conflict theories on inflation: a note

Author

Listed:
  • Nicolás Cachanosky
  • Emilio Ocampo

Abstract

Recent inflationary episodes in advanced economies have reignited interest in Conflict Theories of Inflation (CTI), which attribute price level increases to conflicts over income distribution rather than monetary factors. These heterodox perspectives, rooted in Marxist and post-Keynesian traditions, emphasize the roles of labor-capital tensions, corporate pricing strategies, and broader sociological struggles. This brief note evaluates the theoretical foundations of CTI and examines their policy implications. It highlights how measures inspired by CTI historically result in higher inflation and lower economic growth. The analysis concludes with a critique of CTI’s reductionist framing and a call for policies grounded in a balanced understanding of monetary and conflict dynamics.

Suggested Citation

  • Nicolás Cachanosky & Emilio Ocampo, 2024. "Conflict theories on inflation: a note," CEMA Working Papers: Serie Documentos de Trabajo. 887, Universidad del CEMA.
    • Handle: RePEc:cem:doctra:887
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    File URL: https://ucema.edu.ar/sites/default/files/2024-12/dt887.pdf
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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