I believe Wassily Leontief's views on inflation make more sense than Milton Friedman's.
Friedman contended something like this: "Inflation always and everywhere a monetary phenomenon." I never believed that, for my own reasons, although I separately never believed anything Friedman said. Leontief thought that inflation was the result of the struggle between management and labor. Makes a lot of sense to me. And we don't have inflation in the US or Europe (or Japan, for that matter) because there is, and can not be, a struggle between management and labor. Workers have no power to struggle for anything just now. Gene On Jan 25, 2015, at 3:41 PM, hari kumar <[email protected]> wrote: >> Message: 9 Date: Sun, 25 Jan 2015 13:15:58 +0100 (CET) >> From: Hinrich Kuhls <[email protected]> >> Subject: [Pen-l] A new economic reform effort in Greece and Europe > > Thank you very much for these references. Very useful mine of 'facts' > rather than opinions. > > Admittedly, I do have to spend a lot more time than I have done so far > on them. However in one document from the Rosa Luxemburg Institute, it > is stated by Flassbeck & Lapavitsas (F & L): > > "With open eyes and without ideologi- cal barriers the ECB would have > found early on that unit labour costs, not the money supply, are the > main de- terminant of inflation for the union as a whole, as well as > for its national entities. >> From p.16 : In: > Flassbeck, Heiner; Lapavitsas, Costas (2013): The Systemic Crisis of the Euro > - > True Causes and Effective Therapies. > http://www.rosalux.de/news/39476/flassbecklapavitsas-studie-the-systemic-crisis-of-the-euro-true-causes-and-effective-therapie.html > > My question to you and all on the list may be viewed as naive - nonetheless: > I had always understood that it was indeed the money supply driving > inflation. Indeed as I recall it in prior writings that Marx had also > believed that. > What am I missing? Is the view expressed by F & L - in fact correct? > > Thanks in advance for your views. > Hari Kumar > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
