SMP: Should Central Banks Target NGDP?

El último fin de semana de Abril tuvo lugar en el Center for Free Enterprise en West Virginia University una conferencia sobre si los bancos centrales deben tener metas de ingreso nominal.

En este post del SMP resumo la conferencia y algunas de las presentaciones.

That was the topic of a conference organized by the Center for Free Enterprise at West Virginia University that took place on Saturday, April 25. The conference was divided in two sessions: one where theoretical aspects of NGDP were discussed and another that took a more empirical approach to the matter. I presented in the second session on how to spot if NGDP targeting is, in fact, too loose.

Besides the presence of Scott Sumner, probably the best known proponent of NGDP targeting, other presenters included Thomas Hogan, Alexander W. Salter, Ryan Murphy, Joshua Hendrickson, Robert Lester, and Vipin Veetil. While all papers endorsed NGDP targeting in one way or another, at least as a superior norm to other principles such as price stability or the Taylor rule (Hendrickson and Lester), the papers also focused on either if this holds under a free banking system (Salter) or if the rule could put the economy in an inferior equilibrium (Hogan). Even though I found all presentations interesting, I’ll briefly comment on just two of them.

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