Shon: I'm very worried about the size of the deficits and the resulting debt level relative to g d p a. A better policy would be to have a neare near balance budget on average, sa have surpluss and deficits. But we're not there yet, and i'm not sure we will be there. Juse cause i sio othe risu, i know you're very interested in a shon for listeners don't know, is a macro economist.
What's so bad about rising inflation? Why should we aim for a rate of 2 percent? Why is it a problem if interest rates are too low--and what do we mean by inflation, anyway? Stanford University's John Taylor talks with EconTalk host Russ Roberts about these questions, the Taylor Rule, why inflation is rising, and what the Fed should do about it. At the end of the conversation, Taylor discusses whether stimulus stimulates and the dangers of the national debt.