AYA finbuzz financial health memo September 2019
As of September 2019, this regular podcast is available on our Andy Yeh Alpha fintech network platform . Product market competition and online e-commerce help constrain money supply growth with moderate inflation . Online 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 power concentration further ...