Category: Competition and Inflation
How competition, market structure and pricing power affect inflation outcomes.
Topics: Inflation and its causes, Market concentration, Competition policy, Pricing power, Mark-ups and profit margins, Corporate profits, Productivity impacts of competition, Regulatory responses, Consumer outcomes, Industry structure, Cost-of-living issues where competition is relevant.
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Greedflation: Myth, Reality, or Something In Between?
Did companies use inflation as cover to raise prices, or were supply shocks the real cause of Australia’s cost-of-living crisis? This article explores the evidence behind greedflation, examining corporate profits, market power, competition and recent economic research to separate myth from reality.
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When Prices Rise, Who Wins? The Missing Side of the Inflation Debate
Inflation is usually discussed in terms of who loses, but every price increase is also income for someone else. Before examining greedflation, it’s worth asking a simple question: who benefits when prices rise?
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Why Inflation Feels Different for Everyone
Australia’s inflation rate is only an average. Discover why rising prices affect renters, mortgage holders, retirees and families differently, and what it means for the cost-of-living debate.
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If Inflation Is Imported, Why Doesn’t the RBA Target the Exchange Rate?
During the week, I wrote about interest rates, and inflation. Australia’s inflation strategy relies heavily on one tool: higher interest rates. But as imported inflation re-emerges, it may be time to ask whether another policy lever deserves a place in the conversation. Let’s discuss exchange rate intervention. Most Australians know how the Reserve Bank of…
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RBA Independence and the Accountability Gap in Inflation
Australia’s inflation debate often focuses on the RBA. But when governments and the central bank pull in opposite directions, who is really accountable?
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Why Your Power Bill and Petrol Tank Matter More Than the Inflation Rate
Last week, I explained why the Reserve Bank of Australia keeps interest rates high and why mortgage holders often feel like they’re carrying the burden of the fight against inflation. During the week, the latest inflation figures from the Australian Bureau of Statistics (ABS) help answer an important follow-up question: What exactly is becoming more…
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Unfair or Unavoidable? How the Global Market Dictates Our Interest Rates
Why is the RBA raising interest rates? Explore how the global economy forces Australia’s hand and why inflation leaves us with no easy choices.