A concrete example of this can be seen in recent developments in the United States. Consider the pickup in inflation that we saw last year, which many economists would attribute at least in part to the temporary effects of increased energy costs.
57) and Rodrik, D. (1994). The large “redistributionto-efficiency gains ratio” might tempt protectionists to argue that with a small increase in tariffs a large redistribution would be achieved at the cost of only small efficiency losses. This seems a plausible argument, provided that the redistribution is politically desirable.