Monday, January 7, 2013

Woodford Endorses NGDPLT (again)

Woodford has again endorsed nominal GDP level targeting.   I particularly agree with his point that it is important to define the target in terms of levels and not growth rates and further, that nominal GDP targeting avoids having to determine a controversial estimate for potential output.

1 comment:

  1. Yet the Fed is glacial in moving to operate in a new paradigm, or zero bounds and global sovereign debt yields headed towards zero.

    A WSJ columnist today asked if central bank independence is a good thing.

    It has to be stated, the words "independent public agency" are probably synonymous with "ossified."