John Cochrane's Lesson on Inflation

2 pointsposted 5 hours ago
by 7777777phil

1 Comments

gluke_bywalker

5 hours ago

What would falsify the fiscal explanation, though?

Every serious macro model has a government budget constraint. imo, if “expected future surpluses” are inferred from the inflation we’re trying to explain.. we’ve made the equation balance without establishing what caused prices to rise.