Facts, Fears, and Functionality of Nominal GDP Level Targeting: A Guide to a Popular Monetary Policy Framework

Posted: 13 Jun 2019

See all articles by David Beckworth

David Beckworth

Mercatus Center at George Mason University

Date Written: May 22, 2019

Abstract

Nominal GDP level targeting (NGDPLT) has become an increasingly popular monetary policy framework over the past decade. This rising popularity has led to increased interest in, as well as some confusion over, how this framework actually works. This paper responds to this interest by summarizing the basic facts of NGDPLT and by addressing some of the fears surrounding it. The paper also demonstrates how a NGDPLT might work in practice.

Keywords: Nominal GDP Targeting, Nominal Income Targeting, Monetary Policy Framework, Target

JEL Classification: E40, E42

Suggested Citation

Beckworth, David, Facts, Fears, and Functionality of Nominal GDP Level Targeting: A Guide to a Popular Monetary Policy Framework (May 22, 2019). Available at SSRN: https://ssrn.com/abstract=3392501

David Beckworth (Contact Author)

Mercatus Center at George Mason University ( email )

3434 Washington Blvd. 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://macromarketbusiness.blogspot.com

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