The Inflation Controversy in Latin America: A Survey

Abstract

The questions of whether inflation is harmful or helpful or indifferent to economic growth, whether the elimination of inflation should come before or after a high rate of economic growth has been achieved, and the whole issue of what are the roots of the Latin American inflations, have preoccupied at one time or another almost every economist who has worked in the region. More than any other economic problem, inflation has aroused strong passions in otherwise reflective and technocratically inclined economists, and has compelled many to partake in what almost amounted to an ideological controversy. This experience has, on the one hand, had the effect of forcing economists to reexamine some of the basic value judgments that have been implicit in their analytical work, while, on the other hand, it has often obscured the basic analytical strand that each was following.