Chapter Two: Is the Fed’s Slow Response Making Inflation Worse?

Traditional economic theory would have the Federal Reserve raise interest rates to lower inflation, which is likely to prompt a recession. However, John Cochrane explains, the application of the fiscal theory of inflation may be able to reduce inflation without causing a recession. Cochrane also discusses whether inflation works as a stable or unstable system.

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Click below to watch the other videos in this series.
Chapter 1:    • Chapter 1: Fiscal Policy and Inflatio...  
Chapter 2:    • Chapter 2: Fiscal Policy and Inflatio...  
Chapter 3:    • Chapter 3: Fiscal Policy and Inflatio...  

Additional resources:
Read “Fiscal Histories,” by John Cochrane. Available here. https://static1.squarespace.com/stati....

Listen to “What ‘Is’ Is: John Cochrane on Recessions, Inflation, the Fed, Debt and ‘Green Pork,’” with Bill Whalen and John Cochrane. Available here. https://www.hoover.org/research/matte....

Read “Inflation and Monetary Policy,” via Policy Insights by PolicyEd. Available here. https://www.policyed.org/policy-insig....

Read “The ‘Shrink the Economy’ Act,” by David Henderson. Available here. https://www.hoover.org/research/shrin....

Read “It’s Time to Get Back to Rules-Based Monetary Policy,” by John Taylor. Available here. https://www.hoover.org/research/its-t....

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