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Odd Lots · February 5, 2024 · 55m
Isabella Weber on Why Sellers Inflation Changes Everything
Economist Isabella Weber presents her sellers inflation thesis: post-pandemic inflation was driven not by excess demand or money supply but by firms using supply shocks as cover to raise prices and protect margins.
This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.
Highlights
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Sellers inflation: firms used supply-chain disruptions as cover for coordinated price increases
Weber argues that inflation was not demand-driven but supply-driven with a twist: firms facing cost shocks raised prices beyond cost increases, knowing competitors faced the same costs and would follow suit.•
The monetarist inflation framework is insufficient — price-setting power matters
Weber challenges the monetarist view that inflation is always and everywhere a monetary phenomenon. Her alternative: inflation is a pricing phenomenon that depends on market structure, corporate concentration, and bargaining power.Was this useful?