Profit-Led Inflation: Trivial or Wrong?

Ryan Bourne and Nathan Miller

In recent years, I’ve offered several critiques of inflation theories variously described as “greedflation,” “sellers’ inflation” or “profit-led inflation.”

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The economist Christopher Conlon has now offered a more formal treatment in a forthcoming paper in the International Journal of Industrial Organization. He comes to the same conclusions.

First, a reminder. What is the theory of “profit-led...