Tags » Ngdp Targeting

Three simple changes to the Fed's policy framework

Frankly speaking I don’t feel like commenting much on the FOMC’s decision today to keep the Fed fund target unchanged – it was as expected, but sadly it is very clear that the Fed has not given up the 1970s style focus on the Phillips curve and on the US labour market rather than focusing on monetary and market indicators. 533 more words

Did Bill Gross get some insight from this blog? Maybe but it might (unfortunately) be outdated

The legendary Bill Gross – formerly of PIMCO and these days Janus Capital – does not believe in a hike from the Federal Reserve this year. 599 more words

NGDP Targeting

Jim, it is not complicated - NGDP tells you NOT to hike

This is what St. Louis Fed president James Bullard today told CNBC:

“there’s a powerful case to be made that it’s time to raise interest rates.

344 more words
NGDP Targeting

Icelandic monetary policy has become too easy - Sedlabanki is (rightly) trying to catch up

Yesterday the Icelandic central bank Sedlabanki hiked its key policy rate by 50bp to 5.50%. The hike was fully expected by the markets and is the second hike this year. 502 more words

NGDP Targeting

Does Y determine MV or is it MV that determines P?

Scott Sumner a couple of days ago wrote a post on the what he believes is a Great Stagnation story for the US. I don’t agree with Scott about his pessimism about long-term US growth and I don’t think he does a particularly good job arguing his case. 779 more words

NGDP Targeting

St. Louis Fed's Bullard comes out in support of NGDP targeting

St. Louis Federal Reserve president James Bullard just came out in support of nominal GDP targeting – or rather he has co-authored a rather interesting new Working Paper, which concludes that NGDP targeting under some circumstances would be the best policy to pursue. 946 more words

NGDP Targeting

Mario, stay on track and avoid the mistakes of 1937 and 2011

The global stock markets have been facing some headwinds recently, and there may be numerous reasons for this. One obvious one is the recent rebound in oil prices, which I believe is essentially driven by markets’ expectation that the Saudi-led global oil price war is now ending. 991 more words

NGDP Targeting