Hear, hear!! Beckworth’s and Ponnuru’s call for monetary regime change

When you are blogging you will often find yourself quote other bloggers and commentators. Mostly just four or fives lines. However, this time around I am not going to quote anything from David Beckworth’s and Ramesh’s latest article in National Review. So why is that? Well, I simply agrees strongly with EVERYTHING the two gentlemen write in their article and I can’t quote the whole thing. It is simply an excellent piece on why the Federal Reserve and the ECB should switch to NGDP level targeting. If this will not convince you nothing will.

So instead of quoting the whole thing, but you better just go directly to National Review and have a look. That said, I would love to hear what my readers think of the article.

HT dwb

PS While we are at it – here is one more reading recommendation – have a look at Matt O’Brien’s latest story on Spain. I wonder if we would have been here is the ECB had been targeting the NGDP level. No chance!

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1 Comment

  1. Intellectuals are too polite sometimes. They didn’t call for Bernanke to pack his bags along with the old regime. I don’t get how a cream of the crop economist can make such huge mistakes and not recognize them or realize how much damage the hawk talk does to the markets. There’s just no way we can recover with no real floor on the policy, and the Fed not being willing to do anything until it’s too late. No one wants to go through that will millions of dollars in investments so they just sit on the sidelines.

    Reply

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