This is huge news…more to come…
News updates
And a bit of negative spin on the news from the Journal.
What can I say…WAUW! Good work Scott Sumner and all you other hard blogging Market Monetarists out there…
A month ago nobody was talking about NGDP targeting. Now it is all over the media – and any financial market participant who want to be on top of things will have to get used to talk about NGDP targeting. This is now a market theme.
And yes, yes I know this is just discussions and Bernanke is not on board – yet. Nonetheless I think Scott can be very proud today!
I have been saying we are in 1931 – European debt problems – but we are now moving towards 1933 when FDR de-pegged from gold. I guess the US now is in 1932 – maybe even late 1932.
PS I still think Bernanke needs to invite Scott for lunch…
John Hall
/ November 2, 2011They’ve talked about it in the Fed minutes and a few Fed governors have mentioned it in speeches. It’s just that it took until now for journalists to realize it.
Brito
/ November 2, 2011I’m kind of pissed off at the way he basically brushed it aside as inferior. He could have at least said “we will continue to think about the issue and whether thinking in terms of inflation and employment is better than thinking in terms of nominal GDP.
Lars Christensen
/ November 2, 2011Well Brito…feel free to call Bernanke San – that is what Benjamin Cole is doing all the time when he think Bernanke is behaving has Bank of Japan;-)
I think the discussion is out in the open now…pressure will be building.
Benjamin Cole
/ November 3, 2011I like to call Bernanke, Mr. Bernanke-san as I think that will really goad him into action. He has written clearly on the need for the Bank of japan to something…something like NGDP targeting.
Go Market Monetarists!!!!