Sellers’ inflation, profits and conflict: why can large firms hike prices in an emergency? in: Review of Keynesian Economics Volume 11 Issue 2 (2023)
The dominant view of inflation holds that it is macroeconomic in origin and must always be tackled with macroeconomic tightening. In contrast, we argue that the US COVID-19 inflation is predominantly a sellers’ inflation that derives from microeconomic origins, namely the ability of firms with market power to hike prices. Such firms are price makers, but they only engage in price hikes if they expect their competitors to do the same. This requires an implicit agreement which can be coordina...| Elgar Online: The online content platform for Edward Elgar Publishing
