Annotated Source – Inflation

“Inflation: The Outcome of Institutionalized Social Struggle Over Income Distribution,” by Tom Baumgartner and Tom Burns of the Scandinavian Institutes for Administrative Research explores the causes of inflation and how it can affect humanity. This paper introduces the concept of actor-oriented systems theory (AOS), which defines a method to research the social causes of inflation. The purpose of the AOS system “entails investigating social action,” including investigating price and wage negotiations as well as “decision making activities oriented toward maintaining or changing institutionalized game situations, and ultimately, the system itself,” (178). Inflation, as observed in the AOS system, is also formally defined as “. . . the result of persistent imbalances between the set of monetized claims on resources made by institutionalized actors and the resources available for distribution,” (179). During this research, it was found that each of the actors was just trying to improve or maintain their purchasing power. The researchers also noted that inflation rose quicker when there was a struggle over income within any part of the system. These observations help explain how social changes can influence the state of our economy and points out many of the factors that can cause inflation to increase.
Baumgartner, Tom, and Tom R. Burns. “Inflation: The Outcome of Institutionalized Social Struggle over Income Distribution. N.p.: Acta Sociologica, 1980. PDF.

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2 responses to “Annotated Source – Inflation

  1. I would maybe include the statement about how inflation is the result of vicious circles on page 178 (more on this on page 180) because it explains how inflation is caused. Also, I would include a summary of the information on page 179 concerning imbalances in the market that cause inflation. The imbalances cause inflation when not enough resources are available for a set amount of people. This is evident in the study described.

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  2. I thought this annotation was very well written and I think it will be beneficial to your paper. The intext citations will be helpful when writing your paper I’m sure. I like how the source gave a more specified approach to inflation giving a specific study and its results.

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