Post by account_disabled on Feb 22, 2024 1:41:52 GMT -5
This article can be considered as the second part of the article Three analyzes (explanations) of current inflation and tries to provide an analysis of inflation that is not derived from either the supply of money ( monetarist or quantitative ) or the demand for money. , a consequence in turn of the demand for goods and services in the real ( Keynesian ) economy. And the analytical instrument presented here is derived from the synthesis of Piero Sraffa 's work Production of Commodities by Means of Commodities and the Keynesian theory of money demand , mainly. But before launching into this task, we are going to bring up a work by the professor and great public servant, Luis Ángel Rojo Duque , such as Inflation and crisis in the world economy (facts and theory), published in 1976. Many readers will know that precisely in That decade of the 80s of the last century saw the decline – relative because it never completely disappeared – of Keynesianism and the dawn of monetarism, whose leader and greatest ideologue was Milton Friedman.
Professor Rojo's work is a compilation of four lectures given in December 1975, two years after an unusual and brutal increase in oil prices by OPEC and some other country outside the organization. The conferences Costa Rica WhatsApp Number do not include, obviously, the second increase in these prices that occurred in 1979 by the same organization. But it was not just oil, there was also a disproportionate increase in the price of raw materials and food. As Professor Rojo points out “… the formidable explosion that, in 1974 and with a base of 100 in 1970, had placed the food price index at 239 and that of non-energy industrial raw materials at 168, and had multiplied by 4 the price of crude oil. Professor Rojo gives other examples and other facts, but the summary of all this is told in the fourth conference when he points out that. .
The world economy was going to enter a recessive phase in 1974 with very high inflation rates." This was stagflation , an economic phenomenon that, if not new, was very important due to its intensity and for which neither of the two aforementioned theories had an analytical scheme that could satisfactorily explain it and, therefore, satisfactorily address it with economic policy. It is true that the Keynesian model provides what is known as a liquidity trap , where, no matter how much the money supply increases, that is, the increase granted by central banks to private banks through credits and purchases of public securities (debt ) and private, interest rates resist falling, and with this they do not serve to maintain investment, production and employment, nor to combat the escalation of prices.We are now legal! It was precisely the brutal attack on the labor office on Atocha Street and the impressive demonstration that accompanied the procession that were the decisive events for the legalization of the Communist Party during Holy Week of that year and of the unions on April 27. However, despite all this, the demonstration on May 1, 1977 was not authorized and the smoke canisters and police batons were once again reproduced in the streets of all of Spain. One more example of the razor's edge in which the entire Spanish Transition developed.
Professor Rojo's work is a compilation of four lectures given in December 1975, two years after an unusual and brutal increase in oil prices by OPEC and some other country outside the organization. The conferences Costa Rica WhatsApp Number do not include, obviously, the second increase in these prices that occurred in 1979 by the same organization. But it was not just oil, there was also a disproportionate increase in the price of raw materials and food. As Professor Rojo points out “… the formidable explosion that, in 1974 and with a base of 100 in 1970, had placed the food price index at 239 and that of non-energy industrial raw materials at 168, and had multiplied by 4 the price of crude oil. Professor Rojo gives other examples and other facts, but the summary of all this is told in the fourth conference when he points out that. .
The world economy was going to enter a recessive phase in 1974 with very high inflation rates." This was stagflation , an economic phenomenon that, if not new, was very important due to its intensity and for which neither of the two aforementioned theories had an analytical scheme that could satisfactorily explain it and, therefore, satisfactorily address it with economic policy. It is true that the Keynesian model provides what is known as a liquidity trap , where, no matter how much the money supply increases, that is, the increase granted by central banks to private banks through credits and purchases of public securities (debt ) and private, interest rates resist falling, and with this they do not serve to maintain investment, production and employment, nor to combat the escalation of prices.We are now legal! It was precisely the brutal attack on the labor office on Atocha Street and the impressive demonstration that accompanied the procession that were the decisive events for the legalization of the Communist Party during Holy Week of that year and of the unions on April 27. However, despite all this, the demonstration on May 1, 1977 was not authorized and the smoke canisters and police batons were once again reproduced in the streets of all of Spain. One more example of the razor's edge in which the entire Spanish Transition developed.