Chapter One: The Fiscal vs. Monetary Theory of Inflation

John Cochrane explains that the economic phenomenon of inflation concerns not relative price increases but rather an increase in all prices and wages. Cochrane then demonstrates how the government’s response to the COVID pandemic has caused the current 40year highs of inflation. Finally, Cochrane shows how the fiscal and monetary theories explain inflation and where they differ.

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Click below to watch the other videos in this series.
Chapter 1:    • Chapter 1: Fiscal Policy and Inflatio...  
Chapter 2:    • Chapter 2: Fiscal Policy and Inflatio...  
Chapter 3:    • Chapter 3: Fiscal Policy and Inflatio...  

Additional resources:
Read “Fiscal Histories,” by John Cochrane. Available here. https://static1.squarespace.com/stati....

Listen to “What ‘Is’ Is: John Cochrane on Recessions, Inflation, the Fed, Debt and ‘Green Pork,’” with Bill Whalen and John Cochrane. Available here. https://www.hoover.org/research/matte....

Read “Inflation and Monetary Policy,” via Policy Insights by PolicyEd. Available here. https://www.policyed.org/policyinsig....

Read “The ‘Shrink the Economy’ Act,” by David Henderson. Available here. https://www.hoover.org/research/shrin....

Read “It’s Time to Get Back to RulesBased Monetary Policy,” by John Taylor. Available here. https://www.hoover.org/research/itst....

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