Politics

Antitrust Law Wrong Tool for Inflation

No, antitrust would not work as an effective method for easing inflation.




NRPLUS MEMBER ARTICLE

M
ilton Friedman famously declared that inflation is “always and everywhere a monetary phenomenon.” A statement of the obvious that cannot be said enough, it essentially tells us that inflation can occur only when the quantity of money increases faster than the rise in output. Simple as it may be, it’s an excellent starting point for understanding where inflation comes from, not least at a time of fiscal and monetary largesse. Nevertheless, we are now seeing the Biden administration blame some of today’s inflation on malevolent behavior by large corporations — behavior, they claim, that ought to be addressed by antitrust



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