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In textbook macro, if you have a shock to aggregate demand, then (ceteris paribus) the result is an increase in inflation and an increase in profits. That doesn

by 1980phipsi 3y ago

In textbook macro, if you have a shock to aggregate demand, then (ceteris paribus) the result is an increase in inflation and an increase in profits. That doesn't mean that profits are the cause. So it may be an uninteresting or unhelpful way to put it, but I think he accurately summarizes how many people who have studied economics would think about it.

smt88 3y ago
> So it may be an uninteresting or unhelpful way to put it, but I think he accurately summarizes how many people who have studied economics would think about it. OK, but again: this is not the narrative that is being pushed by corporations and conservatives. You can say, "Oh, hey, this is just textbook economics," but the vast majority of people have never studied one sentence of economics and are being actively lied to.