Reza Eghbali

Articles by Reza Eghbali

Higher Corporate Profit Margins Aren’t Causing Inflation

It is hard to ignore the headlines about US corporate profit margins stabilizing at their highest level in decades. This information has provided plenty of ammunition for populist commentators and politicians who blame corporate greed for the sharp increase in postcovid consumer prices and ignore the elephant in the room, which is a more than 40 percent increase in broad money supply after March of 2020 mostly due to central bank balance sheet expansion and the monetization of massive budget deficits.
That is not to say corporate greed does not exist, but one should note that corporations were also greedy in 2015 when inflation was only 0.7 percent. Why have they been rapidly raising prices and expanding their profit margins only after covid? I want to take you through a simple yet

Read More »