Itamar Drechsler

Itamar Drechsler, a finance professor at Penn's Wharton School, dives into the complexities of inflation from the 1970s, linking it to Regulation Q—an old banking rule that skewed monetary policy. He explains how this regulation created a counterproductive cycle where rate hikes hurt the supply side rather than curbing demand. The conversation also highlights the evolution of banking practices, underscoring lessons from the past that remain crucial for addressing today’s inflation concerns.