Inflation and distribution during the post-COVID recovery

Arbeitspapier

The early stages of recovery from the recession induced by the COVID-19 pandemic have been accompanied by a marked increase in inflation in the US and elsewhere. Much has been made of this outcomes, and the economic distress associated with it, in popular discussion of the economy. This paper provides a Kaleckian conflicting-claims analysis of inflation during the post-COVID recovery, that distinguishes between rising wages, pandemic-related supply shocks, and corporate price-setting behaviour as sources of inflationary pressure. A key conclusion that arises from the co-determination of inflation and distributional outcomes in the Kaleckian framework is that distributional developments that have further disadvantaged working households, rather than inflation per se, are the chief source of recent economic distress - and should be the chief cause for concern among policy makers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FMM Working Paper ; No. 82

Classification and Topics

• Classification: Wirtschaft ; Institutions and the Macroeconomy ; General Aggregative Models: Marxian; Sraffian; Kaleckian ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Aggregate Factor Income Distribution ; Price Level; Inflation; Deflation ; Incomes Policy; Price Policy
• Subject: Inflation ; COVID-19 ; conflicting claims ; wage share ; income distribution

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Setterfield, Mark
• Event: Veröffentlichung
• (who): Hans-Böckler-Stiftung, Macroeconomic Policy Institute (IMK), Forum for Macroeconomics and Macroeconomic Policies (FMM)
• (where): Düsseldorf
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/274244
• Last update: 10.03.2025, 11:41 AM CET