Sunday, November 7, 2010

The cult is growing (amv)

Niklas Blanchard (Modeled Behavior):
In order to square this circle, I propose we forget about inflation. And not just forget about talking about it, but forget about its use in the setting of monetary policy. Instead, we should target nominal expenditure at a steady growth rate (3% a la Woolsey, or 5% a la Sumner, Beckworth, etc.) with level targeting. What advantages does targeting nominal expenditure have? Well… [click for more]
HT Money Illusion