New Articles on NGDP Targeting
Just a quick note on a couple of my papers that recently got published. First, Josh Hendrickson and I published in the Journal of Money, Credit, and Banking earlier this year with an article titled " Nominal GDP Targeting and the Taylor Rule on an Even Playing Field ". Here is the abstract: Some economists advocate nominal GDP targeting as an alternative to the Taylor Rule. These arguments are largely based on the idea that nominal GDP targeting would require less knowledge on the part of policymakers than a traditional Taylor Rule. In particular, a nominal GDP targeting rule would not require real‐time knowledge of the output gap. We examine the importance of this claim by amending a standard New Keynesian model to assume that the central bank has imperfect information about the output gap and therefore must forecast the output gap based on previous information. Forecast errors by the central bank can then potentially induce unanticipated changes in the short‐term nomin...