Notes on Inflation and the Dollar

Authors

  • Paul M. Sweezy
  • Harry Magdoff

DOI:

https://doi.org/10.14452/MR-021-10-1970-03_1

Keywords:

Political Economy

Abstract

It has long been known that in a monopoly capitalist economy inflation is possible without any excess of aggregate effective demand over productive potential. It is enough that demand should increase sharply in one or more important sectors of the economy, permitting monopolistic corporations in these sectors to raise prices and reap higher profits. Other sectors of the economy, even if characterized by excess capacity, have no reason to lower prices to offset the higher prices in what may be called the dynamic sectors, so that we already have an explanation of an increase in the average level of prices. But this is not the end of the matter.

Published

1970-03-01

Issue

Section

Review of the Month

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