The Bigger Worry: Growth or Inflation?
Exchanges
00:00
Fiscal Policy Matters More Than We Give It Credit For
The price of TVs go up and then the workers say, the TV's more expensive. You got to pay me more so I can afford to buy a TV. Then the restaurants says, wait, workers are demanding more wages. And the restaurant prices go up. But if people don't have the money to pay those higher prices, it ends. That's what slowly brings everything back down again. The mechanism just likes stocks. Too much debt chasing too few goods drives up inflation. Government debt works pretty much the same way.
Transcript
Play full episode
