03 - John Cochrane on Finance, the Fiscal Theory of the Price Level, and Blogging
Macro Musings with David Beckworth
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The Role of the Fiscal Theory of the Price Level in US History
The standard story told for getting out of the great inflation is Paul Volcker stepped in. He was a man at the spine and he ushered in to double their processions, two recessions in the early 80s. Now the next part of US history takes us into Volcker and Reagan. And I guess my question is, is it possible for a monetary authority to play some kind of signaling role or is signals that the government as a whole is more committed to low inflation?
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