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TOPICS IN ECONOMIC ANALYSIS: INFLATION Economics 210S Fall 2007 Reading List This seminar focuses on the problem of inflation. We will examine price patterns going back several centuries, as well as past episodes of inflation on a world scale. The course will also examine competing theoretical explanations of inflation. Students are expected to conduct empirical research on two different countries, one in the developed world and one in the developing world, and are expected to present their results in class. Grades for the course will be based on these presentations. Persistent Inflation as a Theoretical Problem I. Twentieth Century Inflations Major inflations: Capie, F. H. (1991). Major Inflations in History. Aldershot, Edward Elgar: Ch 1, 12, 15. Liederman, L. (1993). Inflation and Disinflation: The Israeli Experiment. Chicago, University of Chicago Press: Ch 1-2, 7-8. Brown, A.J. (1985). World Inflation Since 1950: An International Comparative Study. Cambridge, Cambridge University Press: Ch 1-3, [10], 13. International Comparisons: Harberger, A. C. (1988). World Inflation Revisited, Ch. 12 in E. Helpman, A. Razzin, and E. Sadka, Economic Effects of the Government Budget. Cambridge, MA, MIT Press: pp. 217-237. Fender, J. (1990). Inflation: A Contemporary Perspective. Harverster Wheatsheaf, New York: Ch 1. Prof. Anwar Shaikh

2. Competing Explanations of Persistent Inflation Surveys: Frisch, H. (1983). Theories of Inflation. Cambridge, Cambridge University Press: Ch 1-4, 7 McCallum, B.T.(1990). Inflation: Theory and Evidence, Ch 18 in B.M. Friedman and F.H. Hahn, Handbook of Monetary Economics, Vol II. Amsterdam, North-Holland: pp. 963-1012. Classical theories of money and the price level: Laidler, D. (1991). The Golden Age of the Quantity Theory. Princeton, Princeton University Press: Ch 1-2, 5. Humphrey, T.M. (2004). Classical Deflation Theory, Economic Quarterly, Vol. 90/1, Winter, Federal Reserve Bank of Richmond: pp. 11-32. Green, R. (1992). Classical Theories of Money, Output and Inflation: A Study in Historical Economics. London, St. Martins Press: Ch 1, 2, 8. Monetarist theory of inflation: Snowdon, B. and Vane, H.R. (2005). Modern Macroeconomics: Its Origins, Development and Current State. Cheltenham, UK, Edward Elgar: Ch 4. Brumm, H.J. (2005). Money Growth, Output Growth, and Inflation: A Reexamination of the Modern Quantity Theorys Linchpin Prediction. Southern Economic Journal 71(3): pp 661-667. Moroney, J.R. (2002). Money Growth, Output Growth, and Inflation: Estimation of a Modern Quantity Theory. Southern Economic Journal 69(2): pp 398-413. Smith, B. (1988). The Relationship Between Money and Prices: Some Historical Evidence Reconsidered. Federal Reserve Bank of Minneapolis Quarterly Review, Summer: pp 18-32. Oligopoly and monopoly explanations of inflation: Lekachman, R. (1973). Inflation: The Permanent Problem of Boom and Bust. New York, Vintage Books: Ch II Stadnichenko, A. (1975). Monetary Crisis of Capitalism. Moscow, Progress Publishers: pp 7-79.

TOPICS IN ECONOMIC ANALYSIS: INFLATION Economics 210S Fall 2007 Prof. Anwar Shaikh

Reading List Sherman, H. (1976). Stagflation: A Radical Theory of Unemployment and Inflation. New York, Harpers and Row Publishers: Ch 6. Sawyer, M. (2001). Kalecki on Imperfect Competition, Inflation and Money. Cambridge Journal of Economics, 25: pp. 245-261. Money, credit, inflation: Earley, J.S., Parsons, R.J. and Thompson, F.A. (1976). Money, Credit, and Expenditure: A Sources and Uses of Funds Approach. The Bulletin, 1976-3, New York University. Gowland, D. (1991). Money, Inflation and Unemployment. New York, St. Martin's Press: Ch 1-3, 11. Filho, A. (no date). Credit Money and Inflation: A Theoretical Appraisal, unpublished paper. Budget deficit and inflation: Congdon, T. G. (1987). The Link between Budget Deficits and Inflation: Some Contrasts between Developed and Developing Countries, Ch 3, in M. J. Boskin, J. S. Flemming and S. Gorini, Private Savings and Public Debt. Oxford, Basil Blackwell: pp. 234-254. Gowland, D. (1991). op.cit: Ch 9. Structuralist explanations (real wages and inflation): Taylor, L. (1991). Income Distribution, Inflation, and Growth. Cambridge Massachusetts, The MIT Press: Ch 1, 4. NAIRU: New Keynesian theory of inflation and unemployment: Galbraith, J. (2004). Fed Ache: A Review of A Term at the Fed: An Insiders View The People and Policies of the Worlds Most Powerful Institution, The Washington Monthly, July-August: pp. 1-3. Espinosa-Vega, M.A. and Russell, S. (1997) History and Theory of the NAIRU: A Critical Review, Economic Review, Federal Reserve Bank of Atlanta, Second Quarter: pp. 4-25. Snowdon, B. and Vane, H. (2005) Modern Macroeconomics: Its Origins, Development and Current State. Cheltenham, UK, Edward Elgar Publishing: Ch 7. Capacity Utilization Garner, C.A. (1994). Capacity Utilization and U.S. Inflation, Economic Review, Fourth Quarter, Federal Reserve Bank of Kansas City: pp. 5-21. Conflict Models Sarantis, N. (1991) Conflict and inflation in industrial countries, International Review of Applied Economics, 5: pp. 155-169. Scitovsky, T. (1983). The demand-side economics of inflation, in Keynes and the Modern World, David Worswick and James Trevithick, (eds.). Cambridge, Cambridge University Press: pp. 223-254. Screpanti, E. (1997). Wages, Inflation and Employment: A Dynamic Model. Quarderni Del Dipartimento Di Economia Politica, 217 (October), Siena, Italy, University of Siena: pp. 1-16. Stirati, A. (undated). Inflation, Unemployment and Hysteresis: an Alternative View, unpublished paper, Siena, Italy, University of Siena. ClassicalMarxian Approach to Growth and Inflation Shaikh, A. Explaining Inflation and Unemployment: An Alternative to Neoliberal Economic Theory, Ch 4 in A. Vlachou (ed.), Contemporary Economic Theory: Radical Critiques of Neoliberalism. London, MacMillan: pp. 89-105. Gillman, M., and M. Harris and L. Matyas (2004). Inflation and Growth: Explaining a Negative Effect, Empirical Economics 29, Berlin, Springer-Verlag: pp. 149-167. Ramamurthy, B. (2003) Inflation, Money Supply and Budget Deficit: Theory and an Empirical Exercise, unpublished research paper. Early, James S. What Caused Worlwide Inflation: Excess Liquidity, Excessive Credit or Both? Worldwide Inflation Archive, Bd. CXVII, 1981 17(21).