Impact of inflation

Askitas, Anastasios; Ασκητάς, Αθανάσιος

Master Thesis

Author

Askitas, Anastasios

Ασκητάς, Αθανάσιος

Date

2025

Abstract

This thesis investigates the bidirectional relationship between inflation and international trade in the context of a rapidly transforming global economy. Following decades of subdued inflation, recent global events such as the COVID-19 pandemic, the war in Ukraine, and widespread supply chain disruptions have reignited inflationary pressures. These developments challenge traditional macroeconomic theories that explain inflation primarily through monetary factors or cost-push and demand-pull dynamics. The study begins with a review of foundational macroeconomic concepts and historical episodes, particularly the 1970s, to contextualize today’s inflationary environment. It then examines how inflation affects trade flows and vice versa, analyzing both classical mechanisms (import prices, exchange rates, inflation differentials, income) and emerging perspectives such as profit-led inflation ("greedflation"). Through an extensive literature review and analysis of case studies, the thesis explores how domestic economic structures - market concentration, corporate profitability, and wage dynamics - affect a country’s role in international trade and its broader geoeconomic position. The findings underscore the importance of internal factors in shaping global economic interactions and contribute to a deeper understanding of inflation's complex role in the international political economy.

Postgraduate Studies Programme

Διεθνείς και Ευρωπαϊκές Σπουδές

Department

Σχολή Οικονομικών, Επιχειρηματικών και Διεθνών Σπουδών. Τμήμα Διεθνών και Ευρωπαϊκών Σπουδών

Number of pages

Language

English

URI

https://dione.lib.unipi.gr/xmlui/handle/unipi/17801

Collections

Τμήμα Διεθνών και Ευρωπαϊκών Σπουδών

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Except where otherwise noted, this item's license is described as
Αναφορά Δημιουργού-Όχι Παράγωγα Έργα 3.0 Ελλάδα