2023-06-27 09:14:36
There is only a correlation. The original study says: "Given that there is no evidence of a strong and widespread increase in profitability, we do not find evidence that would justify substantial concerns or policy interventions in terms of competition policy." [Link] NEEDS_MORE_RATINGS(7-2-9) Author
2023-06-27 12:21:21
In line with Lucas and Sargent's 70s 'rational expectations' concept, firms tweak prices as per inflation forecasts. Aggressive monetary policy, ongoing for over a decade, primarily fuels these high inflation expectations. [Link][Link] NEEDS_MORE_RATINGS(0-2-7) Author
2023-06-27 12:57:41
NNN. The graph and citation is correct, the original study says that half of the inflation is from corporate profit. They only says that they don't find enough evidence saying that a policy should be introduced, which is another subject. [Link] pages 18 and 19 NEEDS_MORE_RATINGS(8-1-1) Author
2023-06-27 12:58:39
"This chart does not show that corporate profits cause inflation. Nor, for that matter, that labour costs and import prices do. This chart illustrates an accounting identity. It cannot establish causation." [Link] NEEDS_MORE_RATINGS(1-1-9) Author
2023-06-27 13:36:27
Clickbait, From Summary "the limited available data does not point to a widespread increase in markups" assume "a normalization of the profit share" and "Monetary policy will thus need to remain restrictive" to disinflate. Stated simply Prices need to rise less than wages . NEEDS_MORE_RATINGS(0-1-10) Author
2023-06-27 13:39:15
This study is at odds with the economic consensus, which is that inflation is caused by the economy running too hot and excessive demand. "The main causes of inflation can be grouped into three broad categories: demand-pull, cost-push, and inflation expectations." [Link] NEEDS_MORE_RATINGS(4-3-9) Author
2023-06-28 14:02:43
The tweet and chart make no claims about causality — the authors intend to point out the % of new revenue from higher prices that ended up as profit instead of going toward production costs. The word “contributor” may seem to suggest causality, but here it’s akin to “explainer”. NEEDS_MORE_RATINGS(0-1-0) Author