Lukasz Rachel on Non-Ricardian Macroeconomic Policy and Its Implications for Inflation

Lukasz Rachel is a former Bank of England economist and currently is an assistant professor of economics at the University College of London. In Lukasz's first appearance on the show he discusses his big career breaks, the implications of secular stagnation in the industrialized world, what is next for R-star, what non-Ricardian macro policy looks like, his policy prescriptions for the US, and much more.

Check out the transcript for this week's episode, now with links.

Recorded on October 29th, 2025

Subscribe to David's Substack: Macroeconomic Policy Nexus

Follow David Beckworth on X: @DavidBeckworth

Follow Lukasz on X: @LukaszRachel

Follow the show on X: @Macro_Musings

Check out our Macro Musings merch!

Subscribe to David's new BTS YouTube Channel

Timestamps

00:00:00 - Intro

00:01:42 - Lukasz's Career

00:07:30 - Secular Stagnation in the Industrialized World

00:21:08 - What Next for R-Star?

00:36:11 - Brothers in Arms: Monetary-Fiscal Interactions

00:49:53 - Policy Recommendations

00:51:03 - Outro