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NGDP NGDP NGDP.Everyone and their mother is glomming onto the hottest idea in economics right now: Nominal GDP targeting by the Fed.
Goldman’s for it
PIMCO thinks Bernanke might be for it.
Now Krugman has a big post endorsing it.
It’s the hottest idea in economics: Just have the Fed get serious about promoting inflation, so that nominatl GDP (real GDP + inflation) hits whatever number it wants.
We’re sceptical, but our debunking will have to come at a later point.