PODCAST: "Hexapodia" is þe Key Insight…

Noah Smith & Brad DeLong: Record the Podcast You Would Like to Hear!; Aspirationally-Weekly; Aspirationally Less than 60 Minutes: 1. Macro Policy Guiding Principle: prioritize full employment—make Say’s Law true in practice even though it is false in theory… 2. Macro Policy Guiding Principle: move the economy as fast as possible to what its long-term optimal structural configuration should be... 3. Macro Policy Guiding Principle: Guiding principles (1) and (2) overrides desirability of immediate price stability… 4. We still have lots of room to run before we can say that the post-Volcker Fed has failed to meet its inflation target in an average-outcomes sense… 5. Time to panic about inflation will be when the bond market gets worried about it—but right now the bond market is very much “Fed has got this”… 6. Yet the political economy of the thing is overwhelmingly relevant: inflation that gets Biden booted from office would be very bad… 7. Even prolonged inflation may help—in that there is a lot of structural reform we need to do, and this may help us get it done… 8. Hexapodia!

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