Charles Evans, the President of the Chicago Fed is showing some sense:
There are other policies that could give clearer communications of our policy conditionality with respect to observable data. For example, I have previously discussed how state-contingent, price-level targeting would work in this regard.10 Another possibility might be to target the level of nominal GDP, with the goal of bringing it back to the growth trend that existed before the recession. I think these kinds of policies are worth contemplating—they may provide useful monetary policy guidance during extraordinary circumstances such as we find ourselves in today.
Unfortunately, the most sensible proposal was buried in a series of other proposals that I found much less desirable. Still, at least NGDP targeting is a "possibility" that is "worth contemplating." I just wish he would open his eyes to their benefits as a new monetary regime rather than a crutch for "extraordinary circumstances."
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