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Lots of blaming of 'greedflation' as the cause of inflation in the comments here, which is definitely an outside of the economic mainstream view. If you want t
by whimsicalism 3y ago
Lots of blaming of 'greedflation' as the cause of inflation in the comments here, which is definitely an outside of the economic mainstream view.
If you want to hold heterodox beliefs, I think it is at least worth understanding the conventional wisdom on why inflation sees larger corporate profits: It's like Uber surge pricing, if you want more companies on the market making things people want, profits of the incumbents will rise temporarily to entice those new entrants.
- gigel82 3y agoGreedflation absolutely is a cause of inflation; maybe you highlighted the wrong word there. It is a cause, it may not be the (only) cause.
- whimsicalism 3y agoSurging aggregate demand is a cause of inflation. 'Greedflation' is only a cause in so much as governments' refusal to set price ceilings at any moment is a cause of inflation. Sure, we could instantly end inflation by making it illegal to charge prices higher than in 2020, but then we would just get shortages.