Jeff Young spoke with Deborah Lucas, Sloan Distinguished Professor of Finance at the MIT Sloan School of Management and Director of the MIT Golub Center for Finance and Policy. Dr. Lucas' current research focuses on developing and applying financial economics to evaluate the costs and risks of governments’ financial activities. She is also widely published in the fields of asset pricing and corporate finance. We spoke about the causes of the current inflation, the role of fiscal, credit, and monetary policies, the importance of the Fed's large balance sheet, and how the Fed should respond.