Inflation

• John Cochrane on 2020-2021 inflation:

A monetarist might object that this event was (finally) proof of

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• Cochrane, later in December:

Milton Friedman once said that if you want inflation, you can just drop money from helicopters. That is basically what the US government has done. But this US inflation is ultimately fiscal, not monetary. People do not have an excess of money relative to bonds; rather, people have extra savings and extra apparent wealth to spend. Had the government borrowed the entire $5 trillion to write the same checks, we likely would have the same inflation.

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