Ep. 6: Evergrande and Inflation - Why the Model Matters

Today's global decline in stocks, if it turns into something more serious, will affect the inflation debate. In this episode of the Inflation Guy Podcast, the IG explains how asset price declines and the relationship of those declines to growth forecasts cause different effects if you are driven by a classical/Keynesian view of the world, rather than a monetarist view. While this decline may not turn out to be very large, someday the stock market will decline - and how central banks look at that event will directly affect policy. But...should it?