08/08/2026
Guglielmo Carchedi and I have been working on a theory of inflation for several years. We completed a detailed paper some time ago which was accepted for publication by a Marxist journal. However, publication takes forever, so I thought I would provide a shortened version of our work on my blog.
Let me start with part one: mainstream theories.
The mainstream view of inflation can be divided into three groups: 1) the monetarist theory; 2) the Keynesian ‘excess demand’/cost-push theories; and 3) central bank expectations theory.
https://thenextrecession.wordpress.com/2026/07/31/theories-of-inflation-part-one-the-mainstream/
none of which is convincing or borne out by the empirical evidence. No wonder the mainstream has ‘no general theory of inflation’.
