Thursday, November 03, 2011

More Nominal GDP Targeting

More for me than for anyone, again:
Nominal GDP Targeting, A Contribution - Oregon Office of Economic Analysis: "The subject of Nominal GDP targeting has been ongoing within the economic blogosphere for at least the past couple of years. Bentley University professor Scott Sumner has been championing the idea on his The Money Illusion blog (see his National Affairs article too) and the subject has begun to surface as serious monetary policy with recent reports by Goldman Sachs, the Wall Street Journal and Christina Romer’s Op-Ed this past weekend, among many others. The purpose of this post is not to comment explicitly on central bank policy or the different policy regimes currently used around the world, nor is it to comment directly on NGDP targeting itself; it is designed to examine how the Federal Reserve has forecasted NGDP over time. Hopefully this serves the purpose of understanding what the Fed expects economic performance to be in the future when it sets its policies and to see if the Fed currently is already targeting NGDP, at least implicitly."

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