[dannyobrien]

So my model of the fuelling of inflation is that after a priceshock, individuals and organizations alike attempt to figure in present and future price rises into their own pricing. If you can do that perfectly, than inflation stays constant, and its effects are minimised (because your real earnings are going up at the same level, interest rates will include the flat rate, etc). If you estimate too highly, then you end up with spiralling inflation -- but it's certainly safer for your own pocketbook. That's the major risk with high inflation levels.

I can completely believe that producers are able to adjust prices more quickly than the labour market, and can easily overshoot, but it doesn't seem to be a /moral/ failing, as this is being portrayed in some quarters. You can -- and may well, and probably should -- get the same effect from the consequences of wage negotiations during rising inflation. Neither of these are the /source/ of the inflation though; they're both elements of prices rising in the first place. I've seen this conveyed in economics memes with a chart of inflation labelled "greed of corporations over time".

I guess looking into it more, this belief that both wage- and corporate-driven inflation is a misconception is also shared by monetarists like Milton Friedman[1], though I can totally believe conservatives might want to push the wage-driven argument, and progressives the corporate-driven model.

[1] https://www.aier.org/article/there-is-no-such-thing-as-wage-...