Power, Profits and Inflation: A Study of Inflation and Influence in Pakistan

The analysis seeks to look at inflation as a political economic phenomenon, based on a framework devised by Jonathan Nitzan and christened differential accumulation. The theory of differential accumulation rejects the conventional definitions of capital and draws upon Veblenian economics to integrate the definitions of power and capital by describing the ownership of capital as differential power claims over social processes. In order to maximize capital accumulation, businessmen allocate resources, in response to the socio-political environment, to beat a certain benchmark rate of return in their pursuit of maximizing capital accumulation. [SBP No. 43]. URL:[http://www.sbp.org.pk/publications/wpapers/2011/wp43.pdf].