Reading Group Recurring Meeting

The price level is the average price of goods in terms of money. As Perry Mehrling's money view emphasizes, the price level also describes the price of money in terms of goods. But what forces lie behind behind the determination of the price level?

This week, we will discuss a recent paper by Lance Taylor and Nelson H. Barbosa-Filho entitled "Inflation? It’s Import Prices and the Labor Share"

The paper provides a brief summary of US inflation history, along with a survey of theories used to explain it. The authors conclude that changes to the labor share of output, along with input prices, are main drivers of inflation.

If labor share and import prices are indeed the primary drivers of inflation, then why is this true? Under what conditions would it cease to be true?

Our weekly standing video meeting time is 9 am Eastern Time (America/New York) every Saturday.

See our Discord server for ongoing discussion: https://discord.gg/YKHZJR8sKc