Corporate profits account for almost half the increase in Europe’s inflation
This article offers an incorrect causal explanation. Profits don't account for anything. Profits are the result of other effects. Corporations always try to maximise profits. If their profits are higher than previously, the question is, why can they get away with it? Why is competition not eliminating the profits? Why is the price for labour not rising together with other prices?<p>The explanation is: When the quantity of money is expanded, prices don't all rise equally fast. There is a lag for certain adjustments, depending on how often a price is renegotiated and how distant the parties are from the financial system.