Following its initial publication in September 2024, the authors have published a new paperback edition. The book mainly covers the period of high inflation observed between 2021 and 2024.
The aim of the book is to understand the causes that generated inflation during this period and to demonstrate that “inflation is above all a political matter.”
After presenting the various indicators used to analyse price developments, the authors examine the consequences of inflation within society. “According to the OFCE, the 60% of the least affluent households experienced higher-than-average inflation, while the wealthiest 30% faced lower inflation”: deprivation for some, as opposed to a reduction in non-essential spending for others.
The authors argue that the profits generated in the energy, agri-food and manufacturing sectors account for a significant share of inflation. Prices rose the most in sectors facing supply shortages caused by scarcities or disruptions in supply chains.
Beyond energy-related shocks, they believe that different groups of economic actors play a role in price increases through their position within social relations: the actions of shareholders and corporate executives, wage increases demanded by workers, and government action through fiscal measures.
One chapter is devoted to the European Central Bank’s monetary policy, which targets an inflation rate close to 2%. This policy has shown that it is easier to curb inflation by raising key interest rates than to generate inflation in a context of sluggish or even zero growth. The authors question this outdated monetary policy, which they regard as a constraint at a time when the ecological transition requires a large-scale public investment plan.
Eric BERR is a senior lecturer in economics at the University of Bordeaux. His research focuses on debt and, more broadly, on the financing of economies, as well as on macroeconomic policies and the sustainability of development models.
Sylvain BILLOT is an economist and statistician, a graduate of ENSAE, which trains senior officials for France’s national statistics institute, INSEE. He specialises in national accounting.
Jonathan MARIE is a professor of economics at IHEAL-CREDA, Université Sorbonne Nouvelle. His research focuses on macroeconomics.
Book review written by Sophie FRIOT