George Selgin on Average Inflation Targeting and *The Menace of Fiscal QE*
Macro Musings with David Beckworth
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The Fed's Nominal G P Targeting Isn't a Good Thing.
i'm going to take the glasses half full pectivet and make the following case why it may turn out better than we think. The hard part is, when it's above target, right? Do you create a recession to bring the price level back down? And the answers no, tat, that's going to be a tough call. Now, i want to believe that, given the credibility the fed has with inflation and andis anchored well, that you probably won't see that happening any time soon. What you will see will be supply shock, inflation bumps. So let's say that is what we do see. It's effectively doing something that looks a lot like nominal g
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