Ryan Bourne on *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy*

瑞安·伯恩 (Ryan Bourne) 谈*价格之战:人们对通货膨胀、价格和价值的普遍误解如何造成糟糕的政策*

Macro Musings with David Beckworth

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2024-06-03

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Ryan Bourne is the R. Evan Scharf Chair for Public Understanding of Economic at the Cato Institute, and he is also the editor and contributor to a new book titled, *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy.* Ryan joins Macro Musings to talk about this new book, and specifically, the history and functionality of rent and price controls, the basics of dynamic pricing, the root causes of inflation, and a lot more.   Transcript for this week’s episode.   Ryan’s Twitter: @MrRBourne Ryan’s Cato profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Created Bad Policy* by Ryan Bourne et al.   *I, Pencil* by Leonard Read   *Forty Centuries of Wage and Prices Controls: How Not to Fight Inflation* by Robert Schuettinger and Eamonn Butler   *Shock Values: Prices and Inflation in American Democracy* by Carola Binder   Timestamps:   (00:00:00) – Intro   (00:01:05) – The Background Motivation for “The War on Prices*   (00:06:32) – The Definition and Importance of Prices   (00:12:41) – The Parable of “I, Pencil”   (00:18:39) – Rationing on Quality or Quantity: Rent Control   (00:26:39) – The World War II Experience with Price Controls   (00:32:58) – Price and Wage Controls During the Nixon Administration   (00:35:48) – The Effects of a Minimum Wage   (00:38:38) – The Basics of Dynamic Pricing   (00:44:03) – Defining Inflation and Establishing its Sources   (00:56:08) – Was the Recent Inflation Surge Actually Optimal?   (00:59:51) – Outro
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  • Welcome to Macro musings, where each week we pull back the curtain and take a closer look at the most important macroeconomic issues of the past, present and future.

  • I am your host, David Beckwourth, a senior research fellow at the Mercator center at George Mason University.

  • And I'm glad you decided to join us.

  • Our guest today is Ryan Bourne.

  • Ryan is the R.

  • Evans Scharf chair for public understanding of economics at the Cato Institute and is also the editor and contributor to a new book titled the war on prices.

  • Ryan joins us today to discuss his new book.

  • Ryan, welcome to the program.

  • Great to be with you, David.

  • Well, it's great to have you on.

  • And full disclosure, I have a chapter in this book, so I kind of know what to expect.

  • But this is a great book because it's a collection of essays from multiple authors.

  • You yourself contributed as well and have a good sense of the overall volume.

  • Maybe give us the background, the motivation for this book.

  • Why did you want to put it together?

  • Well, evidently, as a result of the recent inflation that we've lived through that you talk about most weeks on your podcasts, we've seen a reemergence of lots of terrible ideas about where inflation comes from, what we should do in terms of dealing with inflation, the underlying causes of inflation.

  • We've had the greedflation arguments, wage price spirals been talked about again in the UK.

  • And as your chapter documents this idea that all of the inflation so far has just been driven by supply shocks like the pandemic and Ukraine war.

  • And I think inevitably, when you get an unexpected inflation, it's in politicians interest, to a lesser extent central bankers interest, to kind of deflect blame for any role that macroeconomic excessive stimulus has played towards malevolent actors in the economy or perhaps external factors.

  • So that kind of explains the greedflation, the pandemic, the supply shocks and everything else.