Ryan Woodgate

📅 Call for Applications 📢

We proudly announce our 10th FMM Summer School "Keynesian Macroeconomics and European Economic Policies"
When and Where? 24th - 29th August 2026 in Berlin
Deadline for applications? 29th February 2026

More information in the 🧵👇 and and here: shorturl.at/KTruu
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This model has undergone many iterations over the last two years, so I'm very happy to have it finally out in the world. This final version is actually the simplest, and so may prove useful not just for further research but also for teaching. Feedback is very welcome! n/n

Without introducing a greater number of parameters, this parsimonious model can explain:

*How wage/price inflation curves are explicitly derived

*How indexation (& real wage resistance more broadly) can be modelled alongside expectations

*How stable inflation morphs into explosive episodes 6/n

Key result: Stability holds only when workers' barrier wage remains below that of firms. When these collide—especially in the face of runaway exchange rate depreciation from a balance-of-payments crisis—hyperinflation emerges, matching real-world stylised facts of hyperinflation 5/n

As inflation & aspiration gaps rise, the conflict between wage claims and price setting accelerates, as workers & firms place greater weight on their inflation expectations. This comes to a head at the 'barrier wages'—critical real wages defining the outer limits of stable inflationary outcomes 4/n

My model starts from explicit foundations for wage & price setting, showing that inflation expectations multiply rather than simply add to workers’ and firms’ aspiration gaps. The result? A nonlinear wage/price dynamic, with boundary behaviours absent from the textbook linear models 3/n

Is conflict inflation inherently stable—or prone to explosion? Prevailing models often pick a side:

BSL (Blecker-Setterfield-Lavoie): Inflation stability via incomplete indexation.

HS (Hein-Stockhammer): Instability via fully adaptive expectations.

But reality does not fit this neat dichotomy 2/n

Excited to share my latest work, "A General Theory of Conflict Inflation". This work unifies stable and explosive inflation dynamics within a simple framework that moves beyond the textbook linear conflict inflation models. The paper in a nutshell... 1/n

European Journal of Economics and Economic Policies Volume 22 Issue 1 (2025) "Volume 22 (2025): Issue 1 (Apr 2025)" published on 07 Apr 2025 by Edward Elgar Publishing Ltd.

The latest issue of EJEEP has just been published! Open access as usual, with an interview with Sheila Dow, a special issue on the COVID 19 pandemic, and other new articles and book reviews

The European Journal of Economics and Economic Policies: Intervention is now on bluesky. Follow here: @ejeep.bsky.social

The Balance-of-Emissions Constraint on Growth: Pathways to Net-Zero Greenhouse Gas Emissions in a Simple Post-Keynesian Model | PKES Despite the scientific consensus on the need to achieve net-zero greenhouse gas (GHG) emissions by 2050 as a key environmental goal, there is little consensus among economists on the best pathway to…

My paper with Valeria Jimenez incorporating net zero GHG into a simple PK model is available as a PKES working paper here 👇