The Greedflation hypothesis - EP186

Economics Explored host Gene Tunny talks about the “greedflation” (greed + inflation) hypothesis with his colleague Arturo Espinosa from Adept Economics. They discuss whether greedy corporations might be responsible for high inflation rates in advanced economies such as Australia and the United States. Gene talks about how the excessive fiscal and monetary stimulus during the pandemic has been a major contributor to higher inflation. Please get in touch with any questions, comments and suggestions by emailing us at [email protected] or sending a voice message via https://www.speakpipe.com/economicsexplored. What’s covered in EP186[00:01:28] Australia's high inflation rate.[00:06:57] UK windfall tax on oil and gas companies. [00:10:27] Greed inflation hypothesis. [00:13:29] Markups as a contributor to inflation. [00:16:20] Industry concentration and inflationary pressure. [00:21:11] Inflation outbreak and COVID stimulus relationship. [00:25:45] Problems with Covid stimulus. [00:27:58] Excessive stimulus and inflation. [00:32:35] Corporate power and antitrust.Links relevant to the conversationGreedflation articles:Blaming inflation on greedy business is a populist cop outProfits and Inflation in Mining and Non-Mining Sectors | The Australia Institute's Centre for Future WorkUnderlying Australia's inflation problem is a historic shift of income from workers to corporate profitsCorporate profits have contributed disproportionately to inflation. How should policymakers respond? | Economic Policy Institute'Greedflation' is the European Central Bank's latest headache amid fears it's the key culprit for price hikesHow Much Have Record Corporate Profits Contributed to Recent Inflation? - Federal Reserve Bank of Kansas CityCost-Price Relationships in a Concentrated Economy - Federal Reserve Bank of BostonInflation is being amplified by firms with market power  Chris Murphy’s economic modeling on stimulus and inflation in Australia:https://onlinelibrary.wiley.com/doi/full/10.1111/1759-3441.12382UK windfall profits tax:What is the windfall tax on oil and gas companies? - BBC NewsEnergy Profits Levy Factsheet - 26 May 2022 - GOV.UKRBA on sources of inflation in Australia:Box C: Supply and Demand Drivers of Inflation in Australia | Statement on Monetary Policy – February 2023 | RBACharts:Australian bank depositsAustralian money supply (M3)Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Full transcripts are available a few days after the episode is first published at www.economicsexplored.com. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.