Theories Of Inflation: A Critical Analysis

Theories of Inflation: A Critical Analysis is an attempt towards the critical analysis of the most influential concepts of traditional and recent theories of inflation. It contains a brief discussion of various developments of the decade of 1970 and onwards in India and external world which led to demand-pull and cost-push inflation in India. It also includes a detailed critical survey of most of the relevant and important theories of inflation. It is almost purely theoretical in nature and helps to have a grip on theoretical analysis of the inflation problem.
The book has five chapters dealing with the problems of inflation. First chapter deals with the introduction of the topic and discusses some of the developments which grew in the Indian economy during 1970s and onwards within and outside the country. It also explains the nature and measurement of inflation. In the second chapter, a review of the existing literature on demand-pull theories has been made. It incorporates the contributions of Fisher, Wicksell, Keynes, Bent Hansen, Friedman, and others. Third chapter critically examines different developments associated with Phillips Curve and Post-Phillips Curve. It includes contributions of Phillips, Lipsey, Milton Friedman, Phelps, and others. In the fourth chapter, a number of cost-push theories have been presented critically. It contains national and international cost-push theories of inflation. In the fifth chapter, conclusion in brief has been given. The book reaches the conclusion that structuralist theory of inflation with certain modification is the most relevant and best fit in the circumstances of less developed countries like India to tackle the problem of inflation.