The Resurgence of Inflation Lessons from History and Policy Recommendations

In light of the resurgence of inflation in developed industrialised countries following a period of inordinately low inflation, this book analyses the causes and devastating effects of inflation by drawing lessons from the past. Focusing on the German hyperinflation of the 1920s and the inflationary waves of the 1970s, it examines the resulting economic crises and their influence on the subsequent periods of social and political turmoil, namely the fascism of the 1930s and the neoliberal revolution of the 1980s. Featuring five detailed case studies on inflationary waves in various countries in the 1970s, the book identifies economic policy errors of the past, seeking to prevent their recurrence. Offering empirical and theoretical insights alike, the authors present strategies for effectively combating inflation and deflation. In turn, the book assesses the complex ties between wage increases, income distribution, and price changes, ultimately providing valuable recommendations on how wage policy can be used to stabilise price level increases at a low level in a world characterised by diverse and extreme economic shocks.

“The Resurgence of Inflation” fosters a vital discourse on wage and price dynamics, economic development and the role of trade unions, making it an essential read for policymakers, economists, and anyone seeking a deeper understanding of today’s economic challenges.

Chapter 1. introduction.- Chapter 2. The German Hyperinflation of 1923.- Chapter 3. Macroeconomic Developments from the End of theof the 1960s to the early 1980s.- Chapter 4. The Inflation Wave from the Late 1960s onward.- Chapter 5. Comparison of developments in the various countries.- Chapter 6. The economic situation in the four countries after the price level shock 2021.-Chapter 7. Conclusions and Recommendations.- Chapter 8. Theoretical Explanations of Price Level Changes.

Michael Heine was a professor at the Hochschule für Technik und Wirtschaft Berlin, University of Applied Sciences (Germany). He served as president of the university for many years until his retirement. He has also published several books, some together with Hansjörg Herr. His main research areas are macroeconomics, European integration and regional economics.

Hansjörg Herr was a professor of “Supranational Integration” at the Berlin School of Economics and Law (Germany) and was one of the founders of the Global Labour University. He has published a number of books in English, German and other languages – including many with Springer. His main research areas are macroeconomics, European integration and development economics.