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An Income-Distribution Demand-Shift Model of Inflation

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Soft Order in Physical Systems

Part of the book series: NATO ASI Series ((NSSB,volume 323))

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Abstract

In the present paper we try to explore the dynamics which lie behind the coexistence and parallel development of inflation and unemployment. As a consequence of our explanation of that phenomenon we also try to answer the question of why conventional anti-inflationary measures of aggregate demand management are found in many cases to work in a direction opposite to that intended. We will use our findings to describe the principles of a policy, which fights inflation and unemployment by the same measures.

“There are, of course, in principle, policies other than aggregate demand management to which we might turn and which are enticing in view of the unpleasant alternatives offered by demand management. The design of better alternatives is probably the greatest challenge presently confronting those interested in stabilization ”

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Author information

Authors and Affiliations

  1. The Ministry of Labor and Social Affairs State of Israel, Kaplan St. 2, Jerusalem, Israel

    Esther Alexander

Authors
  1. Esther Alexander
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Editor information

Editors and Affiliations

  1. Bar-Ilan University, Ramat Gan, Israel

    Y. Rabin

  2. University of California at Los Angeles, Los Angeles, California, USA

    R. Bruinsma

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© 1994 Springer Science+Business Media New York

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Alexander, E. (1994). An Income-Distribution Demand-Shift Model of Inflation. In: Rabin, Y., Bruinsma, R. (eds) Soft Order in Physical Systems. NATO ASI Series, vol 323. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-2458-8_29

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  • DOI: https://doi.org/10.1007/978-1-4615-2458-8_29

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-6046-9

  • Online ISBN: 978-1-4615-2458-8

  • eBook Packages: Springer Book Archive

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