Inflation Without Money: The Role of Credit in the Modern Economy

In his groundbreaking book, "Inflation Without Money: The Role of Credit in the Modern Economy," Felipe Chueiri presents a revolutionary new perspective on the causes of inflation. Chueiri argues that traditional theories of inflation, which focus on the role of money supply, are incomplete and fail to explain the persistent inflationary pressures that have plagued economies around the world in recent decades.

A New Theory of Inflation

Chueiri's theory of inflation is based on the idea that credit, rather than money, is the primary driver of inflation in the modern economy. He argues that when banks lend money, they create new credit, which increases the demand for goods and services and puts upward pressure on prices. This process can occur even if the money supply remains constant, as long as banks are willing to lend more money.

The Evidence for Credit-Driven Inflation

Chueiri provides a wealth of evidence to support his theory of credit-driven inflation. He shows that there is a strong correlation between credit growth and inflation in both developed and developing countries. He also shows that countries with higher levels of financial development tend to have higher rates of inflation.

The Implications of Credit-Driven Inflation

Chueiri's theory of credit-driven inflation has important implications for policymakers. It suggests that traditional monetary policies, which focus on controlling the money supply, may be ineffective in combating inflation. Instead, policymakers need to focus on controlling credit growth in order to keep inflation in check.

Conclusion

"Inflation Without Money" is a must-read for anyone who wants to understand the causes of inflation and the challenges facing policymakers in the modern economy. Chueiri's groundbreaking theory provides a new framework for understanding inflation and offers valuable insights for policymakers seeking to maintain price stability.

Why You Should Buy This Book

If you are interested in learning more about the causes of inflation and the challenges facing policymakers in the modern economy, then "Inflation Without Money" is the book for you. Chueiri's groundbreaking theory provides a new framework for understanding inflation and offers valuable insights for policymakers seeking to maintain price stability.

This book is essential reading for economists, policymakers, and anyone else who wants to understand the complex forces that drive the modern economy.