Aug 29 • 1HR 1M

PODCAST: "Hexapodia" is þe Key Insight! XLI: Inflation & Its Vicissitudes

Noah Smith & Brad DeLong Record the Podcast We, at Least, Would Like to Listen to!; Aspirationally Pseudo-Weekly; Aspirationally Less than 60M

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Key Insights:

  1. The only way to buy insurance against the fiscal theory of the price level’s becoming relevant for the inflation outlook is to keep Trump and Trumpists out of office

  2. We have one political party that could well, someday, turn us inflation-wise into “Argentina”: the Republicans.

  3. But thankfully we have only one such political party.

  4. Democrats need to develop a policy framework for a time of inflation: capacity-building progressivism.

  5. We do not yet know whether what the Fed has done is sufficient to return inflation to its 2%/year Core PCE target.

  6. If the Fed overdoes inflation fighting, we might well find ourselves back at the zero lower bound on interest rates—and that would be a hell of a mess, much worse than having Core PCE inflation at 5%/year for an extra year or so.

  7. Hexapodia!

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