Patrick Horan and David Beckworth on *The Fate of FAIT* and the Future of the Fed’s Monetary Framework
Macro Musings with David Beckworth
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Is the Nominal GDP Target Still a Fate In?
The Fed could adjust the target gradually slowly. Historically, you don't see big swings in potential real GDP. They're usually relatively mild, so it may not be a big deal in practice. It would be an AIT whose average target is updated over time. So it would be a version of a flexible average inflation target but you would have to update it.
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