Friday, April 15, 2022

Video week

It's been a busy week for video. I started Monday with a good roundtable with Benn Steil at the Council on Foreign Relations "Understanding Inflation and its Causes

Tuesday we did a great Goodfellows conversation with Larry Summers. (Audio podcast at that link, plus video if the embed doesn't work.) Larry answers "what would you do at the Fed" much better than I did when Benn asked, among other great topics. 

This week also Casey Weade posted a podcast and video interview we did on Fiscal Theory of the Price Level, for a general audience, at his "Retire with Purpose" podcast. Casey did a great job asking good questions and steering the conversation. Link, including audio podcast

More got recorded, not up yet... a busy week.  


  1. John Cochrane's responses were spot on. Incentives are critical. Our tax code is a mess. A flat tax with a UBI could be a fix. The flat tax would decrease compliance time enough to pay for the UBI. The UBI (set at the poverty rate, $10K/adult and $3K/child) would allow the poor to participate in the system without fear or disincentive. The rich would get the UBI instead of deductions. The greater economic growth plus lower effective tax rates would mean the rich might pay more, but on higher incomes. Social Security could be reduced by the UBI, for no net loss.

    1. I don't think UBI is a fix because it creates a fixed cost for labor, or if you will a lower boundary. Expansion of the EITC is more efficient.

  2. Apparently, Democrats in the Senate have embraced 'The Fiscal Theory of the Price Level'. The Senate Majority Leader has recently asserted,
    "“If you want to get rid of inflation, the only way to do it is to undo a lot of the Trump tax cuts and raise rates. No Republican is ever going to do that, so the only way to get rid of inflation is through reconciliation,” Mr. Schumer said." *

    Good to know. The next lesson on the Senate Majority Leader's agenda is learning how to connect the dots between the federal primary deficit and the rate of inflation. It should be a 'no-brainer' --- normatively speaking.

    * quoted by James Freeman, "Lord of Lockdowns", WSJ, 2022-04-27, online.


Comments are welcome. Keep it short, polite, and on topic.

Thanks to a few abusers I am now moderating comments. I welcome thoughtful disagreement. I will block comments with insulting or abusive language. I'm also blocking totally inane comments. Try to make some sense. I am much more likely to allow critical comments if you have the honesty and courage to use your real name.