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John Cochrane attributes the recent surge in inflation to a one-time increase in price levels driven by a single episode of unfunded fiscal expansion, rather than central bank policy.
He points out that countries such as Switzerland, which did not experience similar fiscal blowouts, saw less inflation during the same period. Cochrane cites research by Barro and Bianchi to support his argument.
Cochrane has previously commented on the role of international institutions in shaping economic policy. He noted that the World Bank tailors its recommendations to recipient preferences. He also observed that the organization continues to request more funding.