I definitely appreciate the value of getting something out there and not letting ideas languish as unpublished drafts!
Responding about NGDPLT, this is “nominal GDP level targeting”—a proposed framework for the federal reserve to make better decisions about when to raise & lower interest rates, print money, or etc. Its biggest proponents are probably libertarian-leaning economists at George Mason University and the Mercatus Center (I generally like these folks). Here is a three-page summary of the idea, that the fed should stop targeting “inflation” (a rate of increase) and instead target a certain overall nominal GDP each year (a level rather than a rate): https://www.mercatus.org/system/files/Sumner-NGDP-Targeting-sum-v1.pdf
The main upsides here are:
the new system might perform better at avoiding inflation and recession.
the new system would be more objective and algorithmic, basically driven by prediction markets—we’d be putting control of the economy more on autopilot in a way that would be more trustworthy, predictable, and fast-acting in a crisis, compared to the current system of “whatever jay powell feels like, within some reasonable range of debate and political framing”. Although of course NGDP level targeting would not go as far as some crypto ideas of completely algorithmic monetary policy.
I definitely appreciate the value of getting something out there and not letting ideas languish as unpublished drafts!
Responding about NGDPLT, this is “nominal GDP level targeting”—a proposed framework for the federal reserve to make better decisions about when to raise & lower interest rates, print money, or etc. Its biggest proponents are probably libertarian-leaning economists at George Mason University and the Mercatus Center (I generally like these folks). Here is a three-page summary of the idea, that the fed should stop targeting “inflation” (a rate of increase) and instead target a certain overall nominal GDP each year (a level rather than a rate): https://www.mercatus.org/system/files/Sumner-NGDP-Targeting-sum-v1.pdf
The main upsides here are:
the new system might perform better at avoiding inflation and recession.
the new system would be more objective and algorithmic, basically driven by prediction markets—we’d be putting control of the economy more on autopilot in a way that would be more trustworthy, predictable, and fast-acting in a crisis, compared to the current system of “whatever jay powell feels like, within some reasonable range of debate and political framing”. Although of course NGDP level targeting would not go as far as some crypto ideas of completely algorithmic monetary policy.