Economic Policy

July 21, 2023 | The Sling

Dylan Gyauch-Lewis

Op-Ed Economic PolicyMedia Accountability

The Inane Indignation Around Sellers’ Inflation

Conventional economists have been bristling about sellers’ inflation being presented as an alternative to the more staid explanation of a wage-price spiral (we’ll come back to that), but in recent months there have been extremely aggressive (and often condescending, self-important, and factually incorrect) attacks on the idea and its proponents. Despite this, sellers’ inflation really is not that far from a lot of long standing economic theory, and the idea is grounded in key assumptions about firm behavior that are deeply held across most economic models.