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Theories of Inflation and their Recent Empirical Evidence in the Federal Republic of Germany

Year:    1981

Author:    Schröder, Wolfgang

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 101 (1981), Iss. 1 : pp. 25–44

Abstract

The demand-pull cum cost-push approach is empirically supported but theoretical reflections show its inadequacy. Import prices apparently do not constitute a stable channel of the international transmission of inflation. The Phillips-curve relation deteriorates the more the sample period approaches the present time. A stable long-run trade-off between unemployment and inflation must be rejected,but the alternative "accelerationist" hypothesis can neither be sufficiently confirmed by German Data nor rejected. The extended accelerationist approach, named "impulse theory" faces the same difficulties as the other approaches: The empirical performance is too good to reject the hypothesis but too bad to rule out other explanations of inflation. The quantity theory fails.

Journal Article Details

Publisher Name:    Global Science Press

Language:    Multiple languages

DOI:    https://doi.org/10.3790/schm.101.1.25

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 101 (1981), Iss. 1 : pp. 25–44

Published online:    1981-01

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    20

Author Details

Schröder, Wolfgang