Pitchfork Economics with Nick Hanauer Inflation: A Guide for Users and Losers (with Mark Blyth)
Sep 9, 2025
Mark Blyth, a political economist and professor at Brown University, dives into the intricacies of inflation and its real-world implications. He critiques traditional economic theories and examines how post-pandemic price hikes affect low-income households disproportionately. Blyth also distinguishes between 'good' and 'bad' inflation, explores the impact of corporate greed on prices, and discusses the need for innovative central bank strategies. His insights challenge misconceptions and provide a roadmap for more equitable economic policies.
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Supply Shocks Drove 1970s Inflation
- Alternative 1970s explanation: overlapping supply shocks (oil, harvests, policy changes) drove inflation more than pure wage‑price spirals.
- Alan Blinder's view suggests inflation would have faded without extreme monetary tightening.
Concentration Makes Inflation Sticky
- Corporate concentration turns transitory price rises into persistent inflation by allowing margin expansion.
- Rising profit shares and weaker competition prevent prices from reverting after shocks.
Low Inflation Was A One‑Time Global Shift
- The low‑inflation era was a 'one‑time trick' driven by China, IT, containers, and financial deregulation.
- Blyth warns those deflationary forces won't return, so low inflation may be hard to sustain.
