SAO PAULO | By Marcus Nunes | In a recent post John Taylor leans on Bob Hall to criticize NGDP Targeting. He goes: “In his paper at the recent Jackson Hole conference, Bob Hall criticized nominal GDP targeting, citing his 1994 paper with Greg Mankiw. Bob argues that “A policy of stabilizing nominal GDP growth would require contractionary policies to lower inflation when productivity growth is unusually high. Such a policy might easily trigger a spell at the zero lower bound.”
Articles by Marcus Nunes
About the Author
SAO PAULO | By Marcus Nunes | Unfortunately, there´s not much to celebrate on this Labor Day. I start by showing what to me is the most telling chart of all concerning the labor market and which I believe contains the “seeds of destruction” in so much as it destroys skills and the likelihood of a return to meaningful employment in the future.
SAO PAULO | By Marcus Nunes | The author believes that two ‘obsessions’ are at the root of the loss in nominal stability that took place in the Bernanke Fed: the ‘obsession’ with inflation and its counterpart, the ‘obsession’ with interest rates.
SAO PAULO | By Marcus Nunes | In Brazil, policies that would make even an ‘advocate’ such as Krugman blush were implemented, with shameful results.
SAO PAULO | By Marcus Nunes | An alternative, which has been proposed by people like Krugman and Blanchard, is for the central bank to increase the inflation target.
SAO PAULO | By Marcus Nunes | Some economists make the now conventional mistake of ascribing the 1937-38 recession to “austerity”. It was a classic monetary tightening (gold sterilization mostly) induced recession.
SAO PAULO | By Marcus Nunes | The amendments made on the way the US GDP is measured favoured higher positive figures, but the rate of growth has not changed in any significant way.
SAO PAULO | By Marcus Nunes | Friedman was right to claim how easy it would have been to avoid the depression, given how easy it was to turn the economy around. Today, on the other hand, we are content with remaining ‘depressed’.
SAO PAULO | By Marcus Nunes | Despite all the Quantitative Easing charges, there’s simply ‘no inflation to be seen since the ‘recovery’ took-off four years ago.
SAO PAULO | By Marcus Nunes | “The past few days have made it overwhelmingly clear that the Fed is steering this recovery. That should be comforting; all it has to do is steer things in a more expansionary direction! But it isn’t.”