Price/profit spiral driving inflation in Australia(theguardian.com)
theguardian.com
Price/profit spiral driving inflation in Australia
https://www.theguardian.com/business/2022/jul/18/rising-corporate-profits-major-factor-in-australias-escalating-inflation-report-finds
3 comments
“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” - Milton Friedman
You know, Milton Friedman forgot to control for money velocity, imagine if he had thought of that like Irving Fisher did.
"The national accounts show it is rising profits, not rising costs, that are driving Australia’s inflation. While workers are being asked to make sacrifices in the name of controlling inflation, the data makes clear that it is the corporate sector that needs to tighten its belt."