Economics of Worldwide Stagflation

This book develops a macroeconomic model accounting for aggregate demand and supply forces to explain output, employment, and price levels in single and multi-economy settings.

It applies the model to compare industrial countries' performance in unemployment, inflation, productivity, and investment, attributing economic decay to 1970s supply shocks like OPEC oil price increases and subsequent policy responses.

The authors highlight institutional differences in labor markets to explain divergent adjustments between the US and Europe, and recommend mixes of demand management, incomes policies, and international coordination.