Posts tagged 'NGDP Targeting'

Some early morning Bean on NGDP

It’s Charlie Bean, the Bank of England’s deputy governor for monetary policy, on nominal income targets. An old wine in a new bottle apparently, even if it is edging closer to the establishment.

Some excerpts (with our emphasis):

The question is: would outcomes have been materially better under an alternative framework, such as a nominal income target?

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Thursday con Carney [updated with written evidence]

It’s Carney live. We know George Osborne is frustrated excited. Mark Carney, the next Governor of the Bank of England and the man Osborne once called “quite simply the best, most experienced and most qualified person in the world to do the job”, is in front of the Treasury select committee.

Here’s the live feed:

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Joining the Establishment, UK NGDP targeting edition

Getting a favourable leader in the Economist is pretty Establishment, surely.

At the very least, it’s interesting that the red-top weekly has managed to endorse and explain a fairly specific nominal GDP target for the Bank of England. Read more

Guest post: Scott Sumner responds on NGDP level targeting

Many thanks to economist Scott Sumner for this guest post responding to a recent comment by John Kemp, a Reuters analyst. Scott’s native writing home is The Money Illusion.

­­John Kemp recently posted the following qu­­estions in a comment at FT Alphaville:

Three questions for advocates of NGDPLT targeting to answer:

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NGDP level targeting: Yellen it from the rooftops, but nobody heard

Given the boost that Goldman’s economists gave to the nominal GDP level targeting movement when they endorsed the idea near the end of 2011, it’s probably a good idea to listen to them when they write about the subject (whether you agree with them or not).

NGDPLT itself has many more high-profile evangelists now than it did then: the Fed adopting an Evans Rule was the latest shift in its direction, and of course the idea is being openly debated in the UK after Mark Carney suggested it would be more potent than flexible inflation targeting. Read more

How soon is now, UK NGDP targeting edition

All it takes — might not be very much. From the Bank of England Act 1998Read more