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In conflict-inflation models, inflation slows not because prices magically settle, but because one or more groups lose the ability to push their income claims.

Inflation stabilizes when the competing claims of workers (wages), firms (profits), and the state (taxes/spending) are forced back into a mutually compatible range—meaning they no longer exceed what the economy can produce at current productivity.

The key question is: what forces that adjustment?

The Mechanisms

What This Means in Simple Terms

in Sum,

Inflation slows when something—recession, coordination, or political change—forces workers, companies, or governments to stop trying to grab more than the economy can produce.