Bedrock in the money wage - money supply inflation controversy

Abstract

The article reviews the different views on the causes of inflation between the two leading macroeconomic paradigms - the Monetarist and the post Keynesian. By analysing the explicit and implicit assumptions underlying the two approaches, the author concludes that a full employment policy compatible with stable prices requires the synchronisation of both monetary and income policy. JEL: E31, E12, E13

Keywords

• Inflation
• Monetarist
• post-Keynesian
• employment policy
• stable prices