Is Nominal Income Targeting the Right Way to Go?

Some have advocated for rules based systems such as targeting nominal GDP. No central bank and the Fed has never explicitly tied our monetary policy decisions to any formula, including Taylor rules. But Taylor rules nonetheless are ubiquitous in all of the work that we do. You have to have a way in a model of explaining how monetary policy will react - some kind of Taylor rule is now very much part of the way we think.