nominal gdp targeting
Post on 23-Feb-2016
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Nominal GDP Targeting. Common View. Money Supply . Encourages Spending . Money Demand . Discourages Spending . Nominal GDP. = Total Current Dollar Spending = Money Supply × Money Use = M × V = P x Y. How it Works. Total Dollar Spending. NGDP level target. - PowerPoint PPT Presentation
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Nominal GDP
Targeting
Common View
Money Supply
Money Demand
Encourages
Spending
Discourages
Spending
Nominal GDP=
Total Current Dollar Spending
=Money Supply × Money Use
= M × V = P x Y
NGDP level target
Time
Tota
l D
olla
r Sp
endi
ng
HOW IT WORKS
NGDP level target
Time
Tota
l Dol
lar
Spen
ding
HOW IT WORKS
WHAT ACTUALLY HAPPENED
WHAT ACTUALLY HAPPENED
WHAT ACTUALLY HAPPENED
EXPECTATIONS MATTER
EXPECTATIONS MATTERAverage Expected Inflation Over Next Five Years
Source: FRED Databse
THE REST OF THE STORY
Source: FRED Database
THE REST OF THE STORY
Source: FRED Database
HELPING SAVERS
Source: Philadelphia Fed Survey of Professional Forecasters, FRED Databse
HELPING SAVERS
Source: SIFMA
HELPING SAVERS
Source: SIFMA
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