The fat cat myth: Who should we really blame for high inflation?

A research paper by the US Federal Reserve Board suggests that the high inflation rates during the post-pandemic period may not be solely due to corporate greed and price-gouging. Instead, the paper argues that government interventions such as subsidies and the slashing of interest rates played a significant role in increasing profit margins. The findings align with an earlier analysis by the Reserve Bank of Australia, which found that the profit share of income in Australia remained relatively stable during the pandemic.

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