by Let’s wrap things up. As a rule, your best bet for understanding the real world is to forget what you read in economics textbooks. Instead, pay attention to what the powerful say when they talk amongst themselves.On that front, CEOs have been explicit that inflation isn’t some exogenous force, driven by the money supply. It’s a game that they actively play.As a case in point, take William Meaney’s recent comments to investors. Meaney, the CEO of an information management company, claimed that he’s been ‘praying for inflation’ because it’s a good excuse to raise prices:Where we’ve had inflation running at fairly rapid rates, we’re able to price ahead of inflation.In other words, forget the money supply. Inflation is a business strategy.Longish post with a lot of data and analysis.Economics
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Let’s wrap things up. As a rule, your best bet for understanding the real world is to forget what you read in economics textbooks. Instead, pay attention to what the powerful say when they talk amongst themselves.On that front, CEOs have been explicit that inflation isn’t some exogenous force, driven by the money supply. It’s a game that they actively play.
As a case in point, take William Meaney’s recent comments to investors. Meaney, the CEO of an information management company, claimed that he’s been ‘praying for inflation’ because it’s a good excuse to raise prices:
Where we’ve had inflation running at fairly rapid rates, we’re able to price ahead of inflation.
In other words, forget the money supply. Inflation is a business strategy.
Longish post with a lot of data and analysis.
Inflation: Everywhere and Always Differential
Blair Fix