Ethan Ilzetzki on the International Implications of Fed Policy, Business Cycle Theory, and the UK Crisis
Macro Musings with David Beckworth
00:00
Is the FTL a Good Theory of the Price Level?
Ethan Olzetsky: I think it's important for central banks to do some heavy lifting here, even if indeed FTL were the true theory of the world. He says all three theories fall a little short in trying to understand what are the drivers of the deeper forces that make the dollar such a convenient currency to hold. Olzetski: The real missing component here is how to measure these things implicitly by looking at the residual of what does an asset pricing model fail to find? "I am in fact quite bullish on the dollar."
Transcript
Play full episode
