Peter Stella on the Fiscal Theory of the Price Level
Macro Musings with David Beckworth
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The Price Level With a Bubble
There is a future flow of real claims against the economy the u.s. government is taking in that keeps near the price level low today yeah so i think i would be sympathetic to that view but let me come back to something personal where i saw a bit of broader insight into this and that is as you might know i got involved in the issue of central bank capital a long time ago. When your equity is deeply negative then basically you're going to have a lot of inflation rightYou either have to default as a central bank or you create a lot offlation right So small changes are very important in thatso it's much more complicated than any model in the real worldyou've
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