What would falsify the fiscal explanation, though?
Every serious macro model has a government budget constraint. imo, if “expected future surpluses” are inferred from the inflation we’re trying to explain.. we’ve made the equation balance without establishing what caused prices to rise.
What would falsify the fiscal explanation, though?
Every serious macro model has a government budget constraint. imo, if “expected future surpluses” are inferred from the inflation we’re trying to explain.. we’ve made the equation balance without establishing what caused prices to rise.