Saleh Romeih Associate Professor of Economics, Georgetown University, McDonough School of Business. Research in industrial organization and antitrust economics.
Jan 19 • 9 tweets • 3 min read
Why is the Biden administration connecting inflation and antitrust? Here is a thread where I speculate a bit, using a supply/demand framework, and drawing on conversations and material previously circulated here on #EconTwitter.
It starts with a conjecture: the impetus for higher prices is an increase in demand, possible due to the American Rescue Plan and the help that it provides. In support is that the economy is seemingly strong (demand up -> higher price, higher output).