Comment by a257

In other words, companies raise prices because they can. Businesses being profit-maximizers are hardly anything new. What is novel about "greed"flation is that it introduces the notion that companies are taking advantage of people's expectations that prices will rise, causing inflation. The question is, is this a short-term phenomena (as with most inefficiencies caused by information asymmetries), or will these abnormal increases last? it's hard to say, as it is dealing with behavioral economics.