~ Monetary Policy Lecture Series ~
Many economists believe that rules-based monetary policy provides better macroeconomic outcomes than a purely discretionary framework delivers. Exactly which rule a central bank should implement, however, remains the source of disagreement. One possible policy rule would be for the central bank to target nominal gross domestic product (NGDP) growth. What would some of the advantages of a NGDP rule be versus, for instance, an inflation-targeting rule? How could a NGDP rule be implemented? Precisely which rate of growth should be targeted?
More About the Speakers
Scott B. Sumner, Ph.D.
Professor of Economics, Bentley University
Norbert J. Michel, Ph.D.
Research Fellow in Financial Regulations