More Scott Sumner
I think that one thing that separates me from other macroeconomists is that I see short run changes in NGDP as being powerfully impacted by changes in future expected NGDP. Thus if the expected level of NGDP one, two and three years out falls sharply, then current NGDP will tend to fall sharply.
This is where he and I disagree. But even if I am correct analytically, I could imagine that we would be better off if the Fed acted “as if” it could and should achieve a target of, say five percent growth in nominal GDP.
Read Sumner’s whole post, and/or listen to a new podcast with Sumner and Russ Roberts.