Edward Elgar Publishing Money and Inflation: A New Macroeconomic Analysis

It is a popular notion that money and output are separate and autonomous entities. Money and Inflation argues that this idea can neither explain the purchasing power of money nor its variations over time, and a new theory is therefore presented in its place. The book aims to provide the foundations for a new analysis of inflation from a macroeconomic perspective. The role of money is investigated in terms of value, prices, profit, and capital accumulation. The author argues that in order to gain a thorough comprehension of inflation it is necessary to focus on the formation of national income, not on its distribution. Sergio Rossi’s new approach proposes a structural reform of modern banking systems, and outlines an original macro-theoretical investigation of measurement problems in price index theory. Despite its elective affinity with the works of Ricardo, Walras and Keynes, the new analysis overturns traditional concepts of money. The discussion elicits a deeper understanding of the conditions underlying today’s inflationary pressures and prescribes new solutions to permanently eradicate them. This unique and path-breaking study will be of enormous interest to academics, researchers, and students involved in monetary economics, as well as monetary policy makers, and central bank and international banking officials. Review ‘Reading Rossi’s book is . . . fascinating and refreshing, and highly worthwhile.’ -- Heinrich Bortis, Journal of Economic Studies ‘It is one of Rossi’s merits that his book moves from a critical to a positive analysis of inflation. . . The reader is thus taken on a stimulating journey where well-established “truths” are challenged on logical and factual grounds.’ -- From the foreword by Mauro Baranzini and Alvaro Cencini Synopsis It is a popular notion that money and output are separate and autonomous entities. "Money and Inflation" argues that this idea can neither explain the purchasing power of money nor its variations over time, and a new theory is therefore presented in its place. The book aims to provide the foundations for a new analysis of inflation from a macroeconomic perspective. The role of money is investigated in terms of value, prices, profit and capial accumulation. The author argues that in order to gain a thorough comprehension of inflation it is necessary to focus on the formation of national income, not on its distribution. Sergio Rossi's new approach proposes a structural reform of modern banking systems, and outlines an original macro-theoretical investigation of measurement problems in price index theory. Despite its elective affinity with the works of Ricardo, Walras and Keynes, the new analysis overturns traditional concepts of money. The discussion elicits a deeper understanding of the conditions underlying today's inflationary pressure and prescribes new solutions to permanently eradicate them. This path-breaking study should be of interest to academics, researchers and students involved in monetary economics, as well as monetary policy makers, and central bank and international banking officials. About the Author Sergio Rossi, Full Professor of Economics, University of Fribourg, Switzerland