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Professor John Cochrane of the Hoover Institution attributes current inflation to the fiscal theory of the price level. He explains that massive government spending, such as the $5 trillion borrowed during COVID-19 with $3 trillion printed by the Fed, com

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Manage episode 505985473 series 96788
Content provided by Audioboom and John Batchelor. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Audioboom and John Batchelor or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Professor John Cochrane of the Hoover Institution attributes current inflation to the fiscal theory of the price level. He explains that massive government spending, such as the $5 trillion borrowed during COVID-19 with $3 trillion printed by the Fed, combined with no credible plan for repayment, directly causes inflation. Cochrane differentiates this from monetarism, noting that quantitative easing (printing money and taking back bonds) did not lead to inflation. He emphasizes that the 2022 inflation spike was a loss of confidence in the government's ability to pay its debts. Successful disinflations, he argues, require a combination of monetary, fiscal, and microeconomic reforms.
1867
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51044 episodes

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Manage episode 505985473 series 96788
Content provided by Audioboom and John Batchelor. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Audioboom and John Batchelor or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Professor John Cochrane of the Hoover Institution attributes current inflation to the fiscal theory of the price level. He explains that massive government spending, such as the $5 trillion borrowed during COVID-19 with $3 trillion printed by the Fed, combined with no credible plan for repayment, directly causes inflation. Cochrane differentiates this from monetarism, noting that quantitative easing (printing money and taking back bonds) did not lead to inflation. He emphasizes that the 2022 inflation spike was a loss of confidence in the government's ability to pay its debts. Successful disinflations, he argues, require a combination of monetary, fiscal, and microeconomic reforms.
1867
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51044 episodes

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