a nominal GDP target, which automatically divides an adverse supply shock equally between impacts on inflation and real …It has been proposed that central banks should target Nominal GDP (NGDP),as an alternative to targeting the money … supply, exchange rate,or inflation. But the proposal appears in the context of the largest advanced economies. In fact NGDP …

I compare nominal GDP level targeting to flexible inflation targeting in a small New Keynesian model subject to the …, for a standard calibration, inflation targeting under discretion leaves the economy open to a deflationary trap. Nominal … GDP level targeting under discretion, by contrast, provides a firm nominal anchor to the economy. Second, I study simple …