Bernanke Just Peed On The Dream Of The Fed Targeting NGDP

ben bernanke testifies joint economic committee

He just got asked it:

At his press conference, Ben Bernanke was asked about the super-hot idea of targeting NGDP.

Basically he said it’s not going to happen. While he said there was some discussion of using Nominal GDP as an indicator, but there was no interest in switching the dual mandate or anything like that.

For some background, NGDP targeting is the hottest idea in monetary policy.

Everyone from bearded academics to Goldman Sachs endorses the idea.

Just not the Fed, it seems.

For FULL coverage of the press conference, see here.

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