Sunday 20 January 2013

Nominal GDP Targeting - Witches Brew

The absurdity of this 'policy' that is the latest mantra propagated by the political and economic policy establishment should be clear at first sight: if an economy is dead in the water all that will happen if any nominal level of GDP is targeted is that the level of inflation is pumped up. No one seems to be interested in explaining why this should have any meaningful - or permanent - influence on real economic activity