nominal gdp targeting

Nominal GDP Targeting

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Nominal GDP

Targeting

Inflation Targeting

NGDP Targeting

=Total Current Dollar

Spending = Money Supply × Money Use

Nominal GDP

Money Supply

Money Demand

Encourages

Spending

Discourages

Spending

AdvantageDon’t need to know Money

Supply

AdvantageDon’t need to worry about

short-run changes to inflation

AdvantageMonetary policy becomes more

predictable

AdvantageDon’t need to

worry about real economy

NGDP level target

Time

Tota

l D

olla

r Sp

endi

HOW IT WORKS

NGDP level target

Time

Tota

l Dol

lar

Spen

ding

HOW IT WORKS

WHAT ACTUALLY HAPPENED

Nominal GDP Targeting Not a New Idea• F.A. Hayek•“Any change in the velocity of circulation would have to be compensated by reciprocal change in the amount of money in circulation if money is to remain neutral…” (1935).

• Milton Friedman•“[T]he Fed must see to it that the quantity of money changes in such a way as to offset movements in velocity...” (2003).

The Fed & China

The Fed & China

The Fed & China

The Fed & China

The Fed & China

The Fed & China

The Fed & China

Nominal GDP Targeting and the Taylor Rule on an Even ...Garín, Lester, and Sims (2016) focus on the relative roles of price and wage rigidities as they relate to nominal GDP . 6 targeting

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KRANNERT SCHOOL OF MANAGEMENTdebate on nominal income targeting. 3AsKoenig(2012a) argues: Suitably implemented, nominal-GDP targeting is the more-familiar Taylor rule’s close cousin

On the E ciency of Nominal GDP Targeting in a Large Open ... · Suitably implemented, nominal-GDP targeting is the more-familiar Taylor rule’s close cousin. The main di erence between

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kenstonlocal.orgkenstonlocal.org/gruver/wp-content/uploads/2015/08/Macroeconomics... · Nominal GDP- Real GDP- GDP Deflator- GDP Deflator Practice 1. The Nominal GDP is $100 billion

A Primer on Price Level Targeting in the U.S./media/files/pdfs/...•A close cousin of price level targeting is nominal income targeting. •Nominal gross domestic product (GDP) targeting

GDP (nominal): ~ USD 2,3 Tln

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-1.7cm Nominal GDP Targeting In Small Open Economies … · over the stability of nominal GDP targeting in a closed economy. As introduced in the ﬁrst chapter: McCallum (1987),

Nominal GDP versus Price Level Targeting: An Empirical ...In two variants of a New Keynesian model, Garín, Lester, and Sims (2016) investigate the welfare implications of targeting

2 Nominal Income Targeting

Real-Time Nowcasting of Nominal GDP Under Structural Breaks · For an extensive discussion on forward guidance and targeting nominal GDP, see Woodford (2012), Belongia and Ireland

The Best of Rules and Discretion: A Case for Nominal GDP ... The Best of Rules and Discretion: A Case for Nominal GDP Targeting in India Pranjul Bhandari and Jeffrey Frankel, Harvard

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The Use of Divisia Monetary Aggregates in Nominal GDP ...kuwpaper/2015Papers/201504.pdf · 5/25/2015 · Nominal GDP targeting defines the final target of policy, but not the instrument,

Nominal GDP Targeting for Developing Countries IndiaPBJF2015.pdf · Nominal GDP Targeting for Developing Countries ... Harvard Kennedy School Jan 27, 2015 Abstract Interest in nominal

Targeting Prices or Nominal GDP: Forward Guidance and ......and compare these regimes to inﬂation targeting. The interest-rate rules are subject to the zero lower bound. The domain

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Nominal GDP Targeting as an Alternative Framework for ... · Nominal GDP Targeting as an Alternative Framework for Monetary Policy A New Keynesian Approach by Gerg}o Motyovszki Submitted

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Nominal GDP Targeting for Developing Countries · 1 Nominal GDP Targeting for Developing Countries Pranjul Bhandari and Jeffrey Frankel* Harvard Kennedy School Jan. 5 Forthcoming,

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Debt and Incomplete Financial Markets: A Case for … · Debt and Incomplete Financial Markets: A Case for Nominal GDP Targeting ... ness, the objective of ... nominal debt liabilities

Measuring a Nation’s Income GDP and Other Measures · Measuring a Nation’s Income GDP and Other Measures. Gross Domestic Product ... Nominal GDP vs. Real GDP Nominal GDP: The

Real GDP vs. Nominal GDP - mrsadow.commrsadow.com/9MaGDP, Including the GDP Deflator and the Consumer... · Page 4 Real GDP vs. Nominal GDP (cont.) Real GDP is a country's GDP that

Targeting Nominal GDP or Prices: Expectation Dynamics and the … · Targeting Nominal GDP or Prices: Expectation Dynamics and the Interest Rate Lower Bound Seppo Honkapohja, Bank

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