User:Sharp-shinned.hawk/sandbox/Jane Jacobs Stagflation

Jane Jacobs and the influence of cities on stagflation

In 1984, journalist and activist Jane Jacobs proposed the failure of major macroeconomic theories to explain stagflation was due to their focus on the nation as the salient unit of economic analysis, rather than the city. She proposed the key to avoiding stagflation was for a nation to focus on the development of "import-replacing cities", which would experience economic ups and downs at different times, providing overall national stability and avoiding widespread stagflation. According to Jacobs, import-replacing cities are those which have developed economies balancing their own production with domestic imports, meaning they can respond with flexibility as economic supply and demand cycles change over time. While lauding her originality, clarity, and consistency, urban planning scholars have criticized Jacobs for not comparing her own ideas to those of major theorists (e.g., Adam Smith, Karl Marx) with the same depth and breadth they developed, as well as a lack of scholarly documentation. Despite these issues, Jacobs' work is notable for having widespread public readership and influence on decision-makers.