03 - John Cochrane on Finance, the Fiscal Theory of the Price Level, and Blogging
Macro Musings with David Beckworth
00:00
The Equivalence of a Gold Standard
I think the ideal monetary system is one with a constant price level. I would like them to target expected inflation at zero forever. The CPI futures contract is another way of explaining the same idea that people understand our gold standard works. If you say the price of gold is a hundred bucks an ounce and you buy and sell as much as you want, now you can see how the fed could set the CPI to 100 forever.
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