Economics: Current and Future Developments

Economics: Current and Future Developments

Volume: 2

Pluralist Readings in Economics: Key Concepts and Policy Tools for the 21st Century

The era of globalization has brought about unprecedented social, political, and environmental challenges for policy makers around the world due to the global impact of economic decisions. In view of ...
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Prices

Pp. 58-77 (20)

Maria Alejandra Madi

Abstract

This chapter presents the contributions of Alfred Marshall, Joan Robinson and Milton Friedman to the study of prices. Firstly, Marshall highlighted the forces that shape the perfect markets and its prices. Secondly, Robinson considered the dynamics of real-world markets where imperfect competition seems to dominate. She showed how imperfect competition affects pricing and strategic decision making. Finally, Milton Friedman presented an analysis of inflation that restates the relevance of the quantity theory of money to explain the roots of inflation. His approach to the trade-off between inflation and unemployment has had deep consequences in the neoliberal economic policy agenda.

Keywords:

Perfect markets, Imperfect competition, Price stability.

Affiliation:

World Economics Association, State University of Campinas, Av. Angélica 1711, cj. 111, São Paulo, SP, Brazil