Pricing cascades: Inflation in a networked economy
Tamara Ceaikovski
The post‑pandemic inflation surge is often attributed to pent-up demand and opportunistic price hikes by firms. This column argues that the surge was not driven by greedy firms or overly expansionary monetary policy, but by unexpected price shocks cascading through a tightly connected production network. As interdependencies in the global economy become increasingly complex, paying close attention to these mechanisms is essential for understanding future inflation risks and designing effective
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