Product market competition and online ecommerce help constrain money supply growth with low inflation.

Peter Prince

2019-09-25 15:33:00 Wed ET

Product market competition and online e-commerce help constrain money supply growth with low inflation. Key e-commerce retailers such as Amazon, Alibaba, and eBay use fast multi-channel pricing algorithms to set the retail prices of consumer goods. For central bankers and monetary policymakers who often need to monitor transitional inflation dynamism over time, retail prices are subject to more frequent adjustments with less insulation from common nationwide shocks. Intense product market competition poses a new economic risk that some retailers may institute an innocuous deterioration in product quality instead of upward price revision.

Online retailers can use smart retail-pricing algorithms to take into account energy costs, exchange rate fluctuations, and other fundamental factors that may affect both production and delivery prices. Product market power concentration further empowers the top 10% superstar companies to capture almost 80% of net profits in Corporate America. These superstar companies retain their competitive moats over the course of more than one single real business cycle (about 7-to-9 years). This anti-competitive clout issue calls for tougher antitrust scrutiny for tech titans (Apple, Amazon, Alibaba, Facebook, Google, and Twitter), big biotech bellwethers (Johnson & Johnson, Pfizer, Merck, Abbot, Amgen, and Bristol-Myers Squibb), and telecoms (Verizon, AT&T, Sprint, and T-Mobile).

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Agile business firms beat the odds by building faster institutional reflexes to anticipate plausible economic scenarios.

Fiona Sydney

2020-09-03 10:26:00 Thursday ET

Agile business firms beat the odds by building faster institutional reflexes to anticipate plausible economic scenarios.

Agile business firms beat the odds by building faster institutional reflexes to anticipate plausible economic scenarios. Christopher Worley, Thomas Willi

+See More

Federal Reserve publishes its inaugural flagship financial stability report.

Peter Prince

2018-12-05 09:38:00 Wednesday ET

Federal Reserve publishes its inaugural flagship financial stability report.

Federal Reserve publishes its inaugural flagship financial stability report. Fed Chair Jerome Powell applauds both low inflation (2%) and low unemployment (

+See More

Federal Reserve reduces the interest rate by another quarter point to the target range of 1.75%-2% in September 2019.

John Fourier

2019-10-07 12:35:00 Monday ET

Federal Reserve reduces the interest rate by another quarter point to the target range of 1.75%-2% in September 2019.

Federal Reserve reduces the interest rate by another key quarter point to the target range of 1.75%-2% in September 2019. In accordance with the Federal Res

+See More

OECD cuts the global economic growth forecast from 3.5% to 3.3% for the current fiscal year 2019-2020.

Rose Prince

2019-03-27 11:28:00 Wednesday ET

OECD cuts the global economic growth forecast from 3.5% to 3.3% for the current fiscal year 2019-2020.

OECD cuts the global economic growth forecast from 3.5% to 3.3% for the current fiscal year 2019-2020. The global economy suffers from economic protraction

+See More

Citron Research short-sellers initiate a class-action lawsuit against Tesla and its executive chairman Elon Musk.

Monica McNeil

2018-09-05 08:34:00 Wednesday ET

Citron Research short-sellers initiate a class-action lawsuit against Tesla and its executive chairman Elon Musk.

Citron Research short-sellers initiate a class-action lawsuit against Tesla and its executive chairman Elon Musk because he might have deliberately orchestr

+See More

President Trump unveils his ambitious $1.5 trillion public infrastructure plan.

Daisy Harvey

2018-02-11 07:30:00 Sunday ET

President Trump unveils his ambitious $1.5 trillion public infrastructure plan.

President Trump unveils his ambitious $1.5 trillion public infrastructure plan. Trump proposes offering $100 billion in federal incentives to encourage stat

+See More