Daily Archives: April 13, 2011

Another Pitch For Nominal GDP Targeting

The idea that the Fed’s monetary policy should focus on stabilizing the growth rate of nominal GDP has been discussed at length by several economists since the Great Recession delivered an attitude adjustment in the land of macro. In fact, it’s an idea that’s been around in formal terms at least since the 1980s. But it’s not obvious that there’s any progress at the central bank, or in policy circles generally, for moving toward this worthy strategy, and so supporters of the concept keep on talking (and writing). The latest comes from David Beckworth, who lays out the reasoning in a concise essay in National Review.

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