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The article specifically says that it's not just supply constraints. "The idea that corporate profit expansion has been a big driver of inflation was once most

The article specifically says that it's not just supply constraints. "The idea that corporate profit expansion has been a big driver of inflation was once mostly confined to trade unions and left-wing academics, but it’s now taken seriously by central bankers." Updated to add: While pure inflation may be driven by the amount of money in a system, prices can also increase for entirely different reasons. (The authors even cite the newly-coined term "excuseflation".) The two authors of this piece previously wrote for the Financial Times, so they have a lot of credibility.

ALittleLight 4y ago
I think they have less credibility after writing this article. Corporate profits don't change the amount of money in a system which is what drives inflation.
- govolckurself 4y ago
  This is, apparently, a frequent misunderstanding of inflation. Inflation means prices go up. That's it. It can be because of an increase in the money supply, but it can also be because of an increase in demand, or a decrease in supply. People tend to use the misunderstanding to push a specific agenda, I've noticed.
than3 4y ago
> The two authors of this piece previously wrote for the Financial Times, so they have a lot of credibility. Honestly, taking their work on its face, they really don't have any credibility. They misattribute, and show a complete lack of understanding regarding what drives cost-push inflation. They promote misleading and false ideas about what you can do about it too. People have no say about what prices are when business sector concentration exceeds a certain point, they have to feed themselves. The article is garbage, and sector concentration is or has exceeded what was previously known during https://en.wikipedia.org/wiki/Robber_baron_(industrialist) https://en.wikipedia.org/wiki/Robber_baron_(industrialist)

ALittleLight 4y ago

I think they have less credibility after writing this article. Corporate profits don't change the amount of money in a system which is what drives inflation.

govolckurself 4y ago
This is, apparently, a frequent misunderstanding of inflation. Inflation means prices go up. That's it. It can be because of an increase in the money supply, but it can also be because of an increase in demand, or a decrease in supply. People tend to use the misunderstanding to push a specific agenda, I've noticed.

than3 4y ago

> The two authors of this piece previously wrote for the Financial Times, so they have a lot of credibility. Honestly, taking their work on its face, they really don't have any credibility. They misattribute, and show a complete lack of understanding regarding what drives cost-push inflation. They promote misleading and false ideas about what you can do about it too. People have no say about what prices are when business sector concentration exceeds a certain point, they have to feed themselves. The article is garbage, and sector concentration is or has exceeded what was previously known during https://en.wikipedia.org/wiki/Robber_baron_(industrialist) https://en.wikipedia.org/wiki/Robber_baron_(industrialist)