Inflation's Hidden Roots offers a fresh perspective on U.S. inflation by examining the intertwined roles of fiscal policy and the international monetary system, particularly the Bretton Woods agreement. Moving beyond the conventional focus on monetary policy, the book argues that government spending and international finance played critical, often overlooked roles in shaping inflation trends from the 1960s onward. For instance, the economic landscape transformed with increasing government expenditure on both social programs and military actions like the Vietnam War.
The book progresses chronologically, starting with foundational economic concepts and the evolution of U.S. fiscal and monetary policies. It then analyzes periods of high and low inflation, dissecting fiscal strategies like tax cuts and social spending. A key section explores the Bretton Woods system, revealing its inherent flaws and ultimate collapse in the early 1970s, which unleashed inflationary pressures.
By weaving together economic history, political science, and international relations, this book provides a comprehensive understanding of how government policy and international monetary arrangements have shaped U.S. inflation, making it valuable for economists, policymakers, and anyone seeking to understand the forces shaping the modern economy.
