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"We argue that market power by some corporations and in some sectors โ€“ including temporary market power emerging in the aftermath of the pandemic โ€“ amplified inflation. It made price increases peak higher and remain more persistent than they would have been in a world with less market power. To be clear: corporate profits were thus not the sole driver of inflation, nor are dominant corporations to blame for the energy shock
caused by Russiaโ€™s invasion of Ukraine. But we argue that their market power exacerbated the fallout โ€“ and that this is not sufficiently captured in the prevailing macroeconomic debate or in workhorse models."

Jung C and Hayes C (2023) Inflation, profits and market power: Towards a new research and policy agenda, IPPR and Common
Wealth. ippr.org/publications/inflatio @economics

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