The paper analyzes the rise of the Latin American-based inertial inflation theory. Starting in the 1950s, various traditions in economics purported to explain the concept of “inflation inertia”. Contributions ranging from Celso Furtado and M.H. Simonsen to James Tobin anticipated key aspects...

This paper aims to contribute to the literature on the intellectual history of the economics discipline by delving into the history of the the sawtooth wages model, namely: the behavior of periodically-adjusted fixed nominal wages under persistent inflationary conditions. Ranging from the...