282: A New Theory on What Causes Inflation with Economist John Cochrane

Today, I’m talking to John Cochrane. John is an economist and the Rose-Marie and Jack Anderson Senior Fellow at the Hoover Institution. He’s a former Professor of Finance at the University of Chicago Booth School of Business and the Department of Economics, and the author of the Grumpy Economist blog.

John’s work is focused on monetary policy and the fiscal theory of the price level, and he’s written at length about macroeconomics, health insurance, econometrics, and regulations, to name just a few topics.

In his upcoming book, The Fiscal Theory of the Price Level, he proposes the thesis that government debt is a core driver of inflation, that high interest rates can make deficits worse, and fiscal policy has to come with monetary policy to solve this problem.

In our conversation, John and I talk about why he’s still optimistic about the long-term outlook despite almost always seeing storm clouds on the horizon, why he doesn’t like to use the word capitalism, and how retirees can learn from his research to best protect themselves from rampant inflation in the years to come.

In this podcast interview, you’ll learn:

• How John maintains a positive attitude in the face of what can seem like neverending bad news and idiotic economic policy.
• Why the entrepreneurial spirit of the United States feels more stifled than ever before.
• Why risk management is so important for retirees right now.
• The one thing John would do right now if he were Fed chairman.
• John’s tax strategy advice for anyone looking to future-proof their portfolio.
• Why John thinks the US dollar will continue to be the global currency.

Show Notes: RetireWithPurpose.com/282

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