The Consequences of GDP Targeting
On Wednesday, I wrote about the limits of monetary policy, and I'd like to stay with that line of thought and look at the impact of continued quantitative easing or targeting nominal GDP (NGDP) directly.
Targeting nominal GDP is just open-ended quantitative easing. Instead of the Federal Reserve announcing a fixed quantity of dollars available to banks over a specified period, it produces dollars without restriction until the economy exhibits real inflation....562 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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