Paul Krugman hopes aboard the NGDP level targeting express. Joe Weisenthal has a great post rounding up other elements of elite support who seem to be getting on the bandwagon. Here’s a Scott Sumner lecture in which he lays out the basic view:
My view of this is somewhat closer to Krugman’s than to Sumner’s in that I think it would be better to have fiscal and monetary policymakers rowing in the same direction.
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