International Economics: IB Economics

Evidence in the US of widespread 'greedflation' with companies using an inflationary environment to hike up prices - so-called price gouging. 

Matt Stoller cites evidence alleging that the practice is widespread, occurring everywhere from the oil industry to rents to food, and the suggestion is that there's also been a commensurate rise in collusion between firms too. As a result, he's calling for tougher competition policy, and more vigorous enforcement by the Federal Trade Commission. 

An interesting piece of US research claims that the current US inflation is, in large part, attributable to greedflation. This describes a situation where firms have taken advantage of rising costs to boost their profit margins at the expense of consumers. 

The findings, from thinktank Groundwork Collaborative  - no prizes for deducing their political leanings - suggests that in some cases - notably via a Proctor & Gamble earnings call  - there's explicit admission of windfall profits, and there seems to be evidence that where Ukraine-linked price rises have subsequently given way to falls in input costs, they haven't been passed on to the consumer. It also hints at the fact that in some sectors, markets have become more concentrated, and thus it's easier to imagine collusion in these circumstances.