Gauti Eggertsson on the Post-Pandemic Inflation Surge and its Implications for Monetary Policy
01/29/24 • 59 min
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Gauti Eggertsson is a professor of economics at Brown University and is the author of several recent papers on the causes of the 2021-22 inflation surge and the lessons to be drawn from it for monetary policy going forward. Gauti is also a returning guest to Macro Musings, and he rejoins the show to talk about these papers and their findings. Specifically, David and Gauti discuss the role of the Fed’s FAIT framework in the post-pandemic inflation surge, the return of the non-linear Phillips curve, the merits of nominal GDP targeting and average nominal output targeting, Gauti’s policy suggestions for the Fed, and a lot more.
Transcript for this week’s episode.
Gauti’s Twitter: @GautiEggertsson
Gauti’s website
Gauti’s Brown University profile
David Beckworth’s Twitter: @DavidBeckworth
Follow us on Twitter: @Macro_Musings
Join the Macro Musings mailing list!
Check out our new Macro Musings merch!
Related Links:
*The Inflation Surge of the 2020s: The Role of Monetary Policy* by Gauti Eggertsson and Donald Kohn
*It’s Baaack: The Surge in Inflation in the 2020s and the Return of the Non-Linear Phillips Curve* by Pierpaolo Benigno and Gauti Eggertsson
*The Slanted-L Phillips Curve* by Pierpaolo Benigno and Gauti Eggertsson
*A Toolkit for Solving Models with a Lower Bound on Interest Rates of Stochastic Duration* by Gauti Eggertsson, Sergey Egiev, Alessandro Lin, Josef Platzer, and Luca Riva
*The Fed’s New Policy Framework: A Major Improvement but More Can Be Done* by Gauti Eggertsson, Sergey Egiev, Alessandro Lin, Josef Platzer, and Luca Riva
*The Princeton School and the Zero Lower Bound* by Scott Sumner
*Temporary Price-Level Targeting: An Alternative Framework for Monetary Policy* by Ben Bernanke
Gauti Eggertsson is a professor of economics at Brown University and is the author of several recent papers on the causes of the 2021-22 inflation surge and the lessons to be drawn from it for monetary policy going forward. Gauti is also a returning guest to Macro Musings, and he rejoins the show to talk about these papers and their findings. Specifically, David and Gauti discuss the role of the Fed’s FAIT framework in the post-pandemic inflation surge, the return of the non-linear Phillips curve, the merits of nominal GDP targeting and average nominal output targeting, Gauti’s policy suggestions for the Fed, and a lot more.
Transcript for this week’s episode.
Gauti’s Twitter: @GautiEggertsson
Gauti’s website
Gauti’s Brown University profile
David Beckworth’s Twitter: @DavidBeckworth
Follow us on Twitter: @Macro_Musings
Join the Macro Musings mailing list!
Check out our new Macro Musings merch!
Related Links:
*The Inflation Surge of the 2020s: The Role of Monetary Policy* by Gauti Eggertsson and Donald Kohn
*It’s Baaack: The Surge in Inflation in the 2020s and the Return of the Non-Linear Phillips Curve* by Pierpaolo Benigno and Gauti Eggertsson
*The Slanted-L Phillips Curve* by Pierpaolo Benigno and Gauti Eggertsson
*A Toolkit for Solving Models with a Lower Bound on Interest Rates of Stochastic Duration* by Gauti Eggertsson, Sergey Egiev, Alessandro Lin, Josef Platzer, and Luca Riva
*The Fed’s New Policy Framework: A Major Improvement but More Can Be Done* by Gauti Eggertsson, Sergey Egiev, Alessandro Lin, Josef Platzer, and Luca Riva
*The Princeton School and the Zero Lower Bound* by Scott Sumner
*Temporary Price-Level Targeting: An Alternative Framework for Monetary Policy* by Ben Bernanke
Previous Episode
Jonathon Hazell on Phillips Curves, Wage Rigidity, and How to Measure R-Star
Jonathon Hazell is an assistant professor of economics at the London School of Economics. Jonathon joins Macro Musings to talk about Phillips curves, R-stars, and nominal wage rigidity. Specifically, Jonathon and David also discuss the how to view the recent inflation experience, how to measure the natural rate using natural experiments, the downward nature of wage rigidity, and a lot more.
Transcript for this week’s episode.
Jonathon’s Twitter: @JADHazell
Jonathon’s website
Jonathon’s LSE profile
David Beckworth’s Twitter: @DavidBeckworth
Follow us on Twitter: @Macro_Musings
Join the Macro Musings mailing list!
Check out our new Macro Musings merch!
Related Links:
*The Natural Rate of Return on Capital: Replication Package* by Jonathon Hazell, Veronica Backer-Peral, and Atif Mian
*The Slope of the Phillips Curve: Evidence From US States* by Jonathon Hazell, Juan Herreno, Emi Nakamura, and Jon Steinsson
*Measuring the Natural Rate Using Natural Experiments* by Veronica Backer-Peral, Jonathon Hazell, and Atif Mian
*Downward Rigidity in the Wage for New Hires* by Jonathon Hazell and Bledi Taska
*National Wage Setting* by Jonathon Hazell, Christina Patterson, Heather Sarsons, and Bledi Taska
*The Unemployment Volatility Puzzle: Is Wage Stickiness the Answer?* by Christopher Pissarides
Next Episode
Mark Koyama on *How the World Became Rich: The Historical Origins of Economic Growth*
Mark Koyama is an associate professor of economics at George Mason University and is a senior fellow with the F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics at the Mercatus Center. Mark is also a returning guest to the podcast, and he rejoins Macro Musings to talk about his recent book that he co-authored with Jared Rubin titled, *How the World Became Rich: The Historical Origins of Economic Growth.* Specifically, David and Mark discuss the key drivers of long-run economic growth throughout history and what we might be able to expect in the future.
Transcript for this week’s episode.
Mark’s Twitter: @MarkKoyama
Mark’s GMU profile
Mark’s Mercatus profile
David Beckworth’s Twitter: @DavidBeckworth
Follow us on Twitter: @Macro_Musings
Join the Macro Musings mailing list!
Check out our new Macro Musings merch!
Related Links:
*How the World Became Rich: The Historical Origins of Economic Growth* by Mark Koyama and Jared Rubin
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