Üretim, kâr ve para: Klasik enflasyon teorisi ve Avrupa ülkelerine uygulanması

This thesis aims at analyzing the dynamics of the inflation. It explains driving and resisting sources of inflation. In this thesis, methodology of economic analysis depends upon one of the crucial scientific laws, known as the law of emergent property. In economics, this law requires focusing on interactions of economic agents. In the literature, classical theory of inflation, bases on this ex-post foundation, is the most recent theory in which emergent property is taken into account. This theory in this thesis is tested for 26 European economies during the period 2007-2018. Using data from Eurostat and European Central Bank, ARDL type of dynamic fixed effect model is estimated for the testing driving and resisting sources of inflation. Findings are consistent with the theory. Results demonstrate that inflation is influenced positively by newly created purchasing power; negatively by unutilized growth capacity; and positively by rate of profit. An important point in the findings is that profit rate influences positively to inflation instead of negatively effect of rate of profit, which drives production. For 26 European economies during the period 2007-2018, this important finding shows that inflation is influenced positively (rather than negatively) by rate of profit as a result of existing credit expansion (especially until 2015) exceeded maximum rate of growth. So, newly created purchasing power was not sufficiently absorbed by supply dynamics of the inflation.