The reason was conventional economists claimed the theory didn’t hold water. They argued that monopolistic corporations would have exercised their pricing power all along, not just during this burst of inflation.
That conventional view is being proven wrong.
Krugman had it right back in the 1990s. Reich doesn’t know shit about economics.
monopolistic corporations would have exercised their pricing power all along, not just during this burst of inflation.
That conventional view is being proven right.
FIFH
What monopolistic corporations might we examine to show this? The NHS, HSE, defence contractors, universities, big Pharma patents for example.
“Reich doesn’t know shit about economics.”
Au bleedin’ contraire, he seems to know only shit about economics.
Maximum profits are a function of a multiplicity of factors including gross margins, sales volume, rate of turnover, interest rates …
The pandemic has changed several of these.
Conventional economics recognises this fact: Reichonomics does not.