Post ARzk5TQ2dmfb0Ttelc by Kay@mastodon.nz
(DIR) More posts by Kay@mastodon.nz
(DIR) Post #ARzTABmfw5dcXY980e by strypey@mastodon.nzoss.nz
2023-01-25T04:33:35Z
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"... US markets have become increasingly concentrated and that makes it extremely likely that these companies have been able to increase prices more than costs, and... despite costs coming down, we haven't seen these companies reduce these prices... ...given high levels of market concentration... what we should be expecting is that these firms have a lot of pricing power and that is driving [price rises]."#IraRegmi, 2023https://pitchforkeconomics.com/episode/the-real-reasons-why-inflation-soared-last-year-with-ira-regmi/#podcasts #PitchforkEconomics #inflation
(DIR) Post #ARzUEsaapTuyPVIMl6 by strypey@mastodon.nzoss.nz
2023-01-25T04:45:39Z
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"... just jamming [interest rates]... up so high that you create a global recession, so tens of millions of people lose their jobs, so prices go down again, is just idiotic."https://pitchforkeconomics.com/episode/the-real-reasons-why-inflation-soared-last-year-with-ira-regmi/#podcasts #PitchforkEconomics #inflation
(DIR) Post #ARzULjp9of5zFkNUxs by strypey@mastodon.nzoss.nz
2023-01-25T04:46:45Z
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"... what has actually led to a situation where our supply chains were just not resilient enough, and were not able to withstand a supply shock of this scale, was a stagnancy in investments, and that is definitely one of the direct outcomes of increased interest rates. So there is a high risk that this is counterproductive and we actually end up making the problem much worse."#IraRegmi, 2023https://pitchforkeconomics.com/episode/the-real-reasons-why-inflation-soared-last-year-with-ira-regmi/#podcasts #PitchforkEconomics #inflation
(DIR) Post #ARzVEfYxMRvDxozeaG by strypey@mastodon.nzoss.nz
2023-01-25T04:56:11Z
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In summary, recent price rises are not caused by #inflation (too much money chasing too few goods) but by supply chain shocks, amplifying the effects of market concentration and price gouging by corporations. Raising interest rates can't fix this problem, and may actually make it worse. If higher interest rates creates a recession, this will increase unemployment and reduce buying power among working people, and slow investment in stabilizing supply chains, so available goods can get to them.
(DIR) Post #ARzk5TQ2dmfb0Ttelc by Kay@mastodon.nz
2023-01-25T07:43:08Z
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@strypey If PM and government want to help support people doing it tough they could consider funding #FoodBanks and other social safety nets. Make sure people can actually have #BreadAndButter or #FruitAndCereal or what food they can eat that they actually like and that sustains them #NZpol
(DIR) Post #ARzkfGDLDI0ATg1LXs by strypey@mastodon.nzoss.nz
2023-01-25T07:49:42Z
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'The Causes of and Responses to Today’s Inflations'#JosephEStiglitz, #IraRegmi, Dec, 2022"The evidence is overwhelming: were there no supply problems, aggregate demand would not be excessive. The inflation we’ve experienced is best understood as resulting from industry-specific problems that many Organisation for Economic Co-operation and Development (OECD) countries are facing. A strong labor market is part of the solution, not the problem."https://rooseveltinstitute.org/publications/the-causes-of-and-responses-to-todays-inflation/#inflation #OECD