On this episode of the Capitalisn’t podcast, hosts Luigi Zingales and Bethany McLean explore the origins of inflation with John H. Cochrane, senior fellow at Stanford’s Hoover Institution and author of the popular Grumpy Economist blog. They discuss Cochrane’s new book, The Fiscal Theory of the Price Level, in which he offers a novel understanding of monetary policy by merging fiscal theory with the standard models of interest-setting central banks. Through a discussion of foundational economic principles such as Milton Friedman’s theories—and the role of government debt, taxation, and spending levels—they shed light on what might drive inflation, and also on the requisite balance between democratically elected institutions and independent central banks in the functioning of capitalism.

More from Chicago Booth Review

More from Chicago Booth

Your Privacy
We want to demonstrate our commitment to your privacy. Please review Chicago Booth's privacy notice, which provides information explaining how and why we collect particular information when you visit our website.