Scott Sumner on Alternative Approaches to Monetary Policy
Macro Musings with David Beckworth
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The Nominal GDP Futures Contract
Michael woodford prefers what he calls an output gap adjusted price level target. A nominal g p level target would have made it easier for the fed to be accommodated during two thousand eight. The idea is that these contracts would represent sort of warning system for the fed. I analogize it to the beeping noise a truck makes backing up when it's about to hit something.
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