December 16, 2011 | 8 comments
December 15, 2011 | 3 comments
December 15, 2011 | 0 comments
December 14, 2011 | 39 comments
December 14, 2011 | 4 comments
According to the Financial Times, the Federal Reserve is considering, among other things, changing its strategy from focusing on an implicit inflation target to targeting a nominal gross domestic product (NGDP) level.
In other words, instead of doing one-off programs like QE2 and Operation Twist to try to steer things in the direction of 2 percent inflation, the Fed announce that it would manipulate its balance sheet in whatever way it needed to to put the country on a path to hit a certain level of current spending.
What makes it so remarkable that the Fed is even considering this change is that the idea more or less originated in the blogosphere, thanks to the work of one blogging economist, Scott Sumner of Bentley College, who maintains The Money Illusion. The Wall Street Journal’s Kelly Evans has a good backgrounder on NGDP targeting, including great links.
The best explainer of the pros and cons of NGDP targeting, however, was written by Sumner himself, and appeared in the fall issue of the great National Affairs.
Updated to fix misleading headline.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?