Beckworth and Ponnuru on NGDP Targeting

Market Monetarist David Beckworth and conservative writer Ramesh Ponnuru have an excellent article on monetary and fiscal policy. Naturally, the centerpiece of an appropriate monetary policy is to correct the huge deviation of nominal GDP from the trend of the Great Moderation. They point out how an appropriate monetary policy will help reduced budget deficits and the expansion of the national debt. And further, that such a policy is especially needed when fiscal restraint is needed to reduce the long run budgetary problems facing the U.S.

Exactly.