Macro Musings with David Beckworth Mark Blyth on the Winners and Losers from Inflation
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Jun 30, 2025 
Mark Blyth, a Professor of International Economics at Brown University and author of "Inflation: A Guide for Users and Losers," dives into the complexities of inflation and its varied impacts on society. He introduces the concept of angrynomics, discussing how inflation affects different income groups. Blyth critiques traditional monetary theories and explores the dynamics of price controls during the pandemic. He also examines hyperinflation, demographic decline, and the need for adaptable policies in today’s economic landscape.
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Inflation Creates Winners and Losers
- Inflation does not affect everyone equally; it creates distinct winners and losers based on income and wealth distribution.
- Recognizing these distributional impacts helps us understand inflation beyond the traditional monetary phenomenon view.
Inflation Measurement is Discretionary
- Inflation indices are constructed with significant discretion, especially concerning housing costs, which impacts perceived inflation.
- Different groups experience inflation differently due to varying consumption baskets, making one inflation measure insufficient.
Good, Bad, and Ugly Inflation
- Inflation can be categorized as good (moderate and stable), bad (driven by unanchored expectations or policy mistakes), and ugly (hyperinflation).
- Hyperinflation happens in broken economies, not as a gradual rise from moderate inflation.
