03 - John Cochrane on Finance, the Fiscal Theory of the Price Level, and Blogging
Macro Musings with David Beckworth
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The Fiscal Theory and Expected Surpluses
Yanni Miller: The fiscal theory allows you to start with something frictionless. He says it doesn't matter if the government issues long-term debt or short-term debt, just like stocks and bonds. When people lose faith in the government's ability to pay back their debts, that feels like aggregate demand driving up a price of food,. he says.
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