TY - JOUR
T1 - FRIEDMAN AND ITALIAN QUANTITY THEORISTS ON INFLATION: A COMPARISON
AU - PITTALUGA, GIOVANNI BATTISTA
AU - SEGHEZZA, ELENA
AU - Mastromatteo, Giuseppe
PY - 2024
Y1 - 2024
N2 - In the first part of the last century, some Italian economists, like Einaudi and Bresciani-Turroni,
explained post-WWI inflation and hyperinflation using the quantity theory. As Friedman, they
trace inflation to excessive money supply to cover public deficits. However, their explanation of
the origins and effects of inflation differs in some key respects from that of Friedman. While
Friedman refers to aggregate variables, the Italian quantity theorists, as Condorcet,
acknowledge that, during inflation, goods and services prices rise at different rates. Inflation,
therefore, has redistributive effects both with respect to wealth and income. Friedman and the
Italian quantity theorists reach also different conclusions on the distorting effects of inflation:
For Friedman these distortions end with the adjustment of expectations, for the latter inflation
distorts the structure of the economy and these distortions can only be reabsorbed in the
medium-long run. Nothwithstanding these differences, both Friedman and the Italian quantity
theorists share the idea that prerequisite for disinflation is reabsorption of government budget
imbalances and that it is necessary to prevent disinflation from degenerating into deflation.
AB - In the first part of the last century, some Italian economists, like Einaudi and Bresciani-Turroni,
explained post-WWI inflation and hyperinflation using the quantity theory. As Friedman, they
trace inflation to excessive money supply to cover public deficits. However, their explanation of
the origins and effects of inflation differs in some key respects from that of Friedman. While
Friedman refers to aggregate variables, the Italian quantity theorists, as Condorcet,
acknowledge that, during inflation, goods and services prices rise at different rates. Inflation,
therefore, has redistributive effects both with respect to wealth and income. Friedman and the
Italian quantity theorists reach also different conclusions on the distorting effects of inflation:
For Friedman these distortions end with the adjustment of expectations, for the latter inflation
distorts the structure of the economy and these distortions can only be reabsorbed in the
medium-long run. Nothwithstanding these differences, both Friedman and the Italian quantity
theorists share the idea that prerequisite for disinflation is reabsorption of government budget
imbalances and that it is necessary to prevent disinflation from degenerating into deflation.
KW - Monetarism
KW - Friedman
KW - Italian Economists
KW - Monetarism
KW - Friedman
KW - Italian Economists
UR - http://hdl.handle.net/10807/296656
M3 - Article
SN - 2499-8265
VL - 2024
SP - 1
EP - 29
JO - ECONOMIA INTERNAZIONALE / INTERNATIONAL ECONOMICS
JF - ECONOMIA INTERNAZIONALE / INTERNATIONAL ECONOMICS
ER -