Funny Economist - Randall Parker's Completely Serious Macroeconomics Blog: Another look at Nominal GDP targeting.

Monday, November 21, 2011

Another look at Nominal GDP targeting.

If inflation expectations increase, doesn't that shift the Phillips curve?

http://economix.blogs.nytimes.com/2011/11/02/will-bernanke-take-aim-at-g-d-p/?hp

3 comments:

"Stacks" Edwards said...: Based on historical evidence, only if the policy of attempting to increase inflation expectations were to continue into the long run. Isnt there a SR and LR PC?

Do you believe the PC has shifted since QE(s)?; November 21, 2011 at 11:12 AM
EconPirate said...: Dr. P, wouldn't it be fair to say that a sizable amount of the 60s & 70s Phillips Curve shift(s) were attributable to central bank policy? (ie: targeting interest rates in an inflationary environment); November 24, 2011 at 9:13 AM
Randall Parker said...: EconP: That sounds right to me. Let's not forget the supply shocks either.; November 29, 2011 at 11:00 AM

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