Tags » Ngdp Targeting

The Mankiw-Darda rule tells the Fed to wait a bit with hikes

Greg Mankiw has a blog post commenting on my previous post on the so-called Mankiw rule.

I show in my post that according to both the original and a re-estimated version of the Mankiw rule the Federal Reserve should be hiking rates right now. 1,530 more words

NGDP Targeting

Certainly not perfect, but Fed policy is not worse than during the Great Moderation (an answer to Scott Sumner)

Scott Sumner has replied to my previous post in which I argued that the Federal Reserve de facto has implemented a 4% NGDP level targeting regime (without directly articulating it). 1,734 more words

NGDP Targeting

The Fed's un-announced 4% NGDP target was introduced already in July 2009

Scott Sumner started his now famous blog TheMoneyIllusion in February 2009 it was among other things “to show that we have fundamentally misdiagnosed the nature of the recession, attributingĀ to the banking crisis what is actually a failure of monetary policy” 1,532 more words

End Europe's deflationary mess with a 4% nominal GDP (level) target

From the onset of the Great Recession in 2008 the ECB has been more afraid of doing “too much” rather than too little. The ECB has been obsessing about fiscal policy being too easy in the euro zone and about that too easy monetary policy would create bubbles. 992 more words

Euro Crisis

Is Karnit Flug jeopardizing Stan Fischer's "straight line policy"? Not yet, but...

It is no secret that I think that Stanley Fischer did a good job as governor of the Bank of Israel from 2005 to 2013. He basically… 1,332 more words