perspectiveStructuralist Economics
“
This viewpoint suggests that inflation, particularly in developing economies, can be caused by inherent rigidities and imbalances in the economic structure, such as concentrated market power, inefficient agricultural sectors, or reliance on imported goods.
controversy
Supporting arguments
- Monopolies or oligopolies can exert price-setting power more easily, contributing to inflation.
- Bottlenecks in key sectors or dependence on volatile commodity imports can create persistent inflationary pressures irrespective of demand or broad money supply.
Read the full exploration