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b'In June 2022, Federal Reserve Chair Jerome Powell said, "we [now] understand better how little we understand about inflation." So what do we actually know about inflation?\\n\\nIn this episode, Luigi and Bethany explore the origins of inflation with John Cochrane, Senior Fellow at Stanford\\u2019s Hoover Institution and author of the popular "Grumpy Economist" blog. They discuss Cochrane\'s new book, "The Fiscal Theory of the Price Level", where 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 \\u2013 and the role of government debt, taxation, and spending levels \\u2013 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.'