This book identifies the likely causes of high inflation and assesses the available policy options for preventing or curing it. The approach consists of making hypotheses about the economic motivation of individuals, developing a model of their behaviour, testing the model against the data and assessing the results. Questions are raised about the efficacy of the conventional policy of creating a recession in order to reduce inflation. Other policy options are suggested including the restructuring of the wage re-negotiation process. The book is aimed at anyone involved in macro-economic modelling, forecasting and policy advice.
