Is the Fiscal Theory of the Price Level a Good Way to Explain the Inflation Surge?

Ethan Ilzetzki is an associate professor of economics at the London School of Economics and a research fellow with the Center for Economic Policy Research. Ethan is also a returning guest to the show, and he rejoins David on Macro Musings to talk about the international implications of Fed Policy and the strong dollars as well as Ethan’s thoughts on business cycle theory in light of the recent inflation surge. David and Ethan also discuss Ethan’s takeaways from the UK crisis, how to evaluate and contextualize monetary policy shocks, the contemporary applications of the fiscal theory of the price level, and more.

Transcript for the episode can be found here.

Check out our new Macro Musings merch here, and use the promo code NGDP for 10% off!

Ethan’s Twitter: @ilzetzki

Ethan’s website

Ethan’s LSE profile

David’s Twitter: @DavidBeckworth

Follow us on Twitter: @Macro_Musings

Click here for the latest Macro Musings episodes sent straight to your inbox!

Related Links:

*UK Financial Crisis of 2022: Retrospective Diagnosis and Policy Recommendations* by Ethan Ilzetzki

*Exchange Arrangements Entering the Twenty-First Century: Which Anchor Will Hold?* by Ethan Ilzetzki, Carmen Reinhart, and Kenneth Rogoff

*Inflation as a Fiscal Limit* by Francesco Bianchi and Leonardo Melosi

*The Global Financial Cycle* by Helene Rey and Silvia Miranda-Agrippino