Basil Halperin is an assistant professor of economics at the University of Virginia. In Basil's first appearance on the show he discusses the famous but flawed Citrini essay, why Silicon Valley's growth expectations aren't showing up yet in interest rates, the impact of Less Than Zero by George Selgin, what the true frictions in the economy are, the differences between Calvo and menu-cost pricing, the impact of transformational AI on emerging economies and the housing market, and much more.

Watch the full length video on our new YouTube Channel!

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

Recorded on March 27th, 2026

Subscribe to David's Substack: Macroeconomic Policy Nexus

Follow David Beckworth on X: @DavidBeckworth

Follow Basil Halperin on X: @BasilHalperin

Follow the show on X: @Macro_Musings

Check out our Macro Musings merch!

Timestamps

00:00:00 - Intro

00:02:20 - Global Intelligence Crisis

00:07:04 - Transformative AI and Interest Rates

00:21:05 - Optimal Monetary Policy Under Menu Costs

00:48:13 - Transformative AI and its Macro Implications

00:55:41 - Outro

Basil Halperin on Macroeconomic Policy in an Age of Transformative AI