Wednesday, May 25, 2022

Inflation, Market Power, and Price Controls

From University of Chicago survey of economists.

Question A:

A significant factor behind today’s higher US inflation is dominant corporations in uncompetitive markets taking advantage of their market power to raise prices in order to increase their profit margins.


Question B:

Antitrust interventions could successfully reduce US inflation over the next 12 months.


Question C:

Price controls as deployed in the 1970s could successfully reduce US inflation over the next 12 months.


 

 

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