Inflation in 2022 was due to bottlenecks in production due to the pandemic. The rate hikes did not stop inflation, according to Alan Blinder, former vice chairman of the Federal Reserve. Since July 2022, the rate of price increases in the United States has decreased. Unemployment is the lowest in 50 years. The rising prices are otherwise due to too little competition between the few dominant market players and too free pricing....
Category: Monopol
Interest rate increases do not bite today's profit-seeking inflation
Interest rate increases do not bite profit-driven inflation. Big capital exploits its strength. Many companies have a monopoly position. They use this to push prices up faster than wages. This is how Big Capital exploits the crisis after Ukraine and the bottleneck effects after Corona. There are now bottlenecks on e.g. economically important semiconductors and other. This means that for the production of certain goods it does not…