On fighting inflation

18 Mar, 2023 at 16:51 | Posted in Economics | 3 Comments


Absolutely lovely! Comedian and television host Jon Stewart turns out to know much more about real-world economics than mainstream Harvard economist Larry Summers. Don’t know why, but watching this interview/debate makes yours truly come to think about a famous H. C. Andersen tale …

Ep. 18 - The Emperor is Naked! - Buck and Chaco (podcast) | Listen Notes


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  1. What if Jon Stewart presented Fischer Black’s heterodox view that inflation is mostly just noise, not “too much money chasing too few goods”? Can available empirical data, with plausible error bars, be presented to show consistency with either model? (See economicsfromthetopdown.com for empirical backing of the “rates cause inflation” theory)
    And even if psychological noise sometimes makes Summers’ model a self-fulfilling prophecy (“If people believe that certain changes in the money stock will cause changes in the rate of inflation, that may well happen, because their expectations will be built into their long term contracts” – Fischer Black in “Noise”), why isn’t full indexation the least harmful policy response?

  2. to “know”!

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