On the Desirability of Nominal GDP Targeting

@article{Garn2015OnTD,
  title={On the Desirability of Nominal GDP Targeting},
  author={Julio Garı́n and Robert E. Lester and Eric R. Sims},
  journal={ERN: Other Macroeconomics: Prices},
  year={2015},
  url={https://api.semanticscholar.org/CorpusID:13492347}
}
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69 Citations
Highly Influential Citations
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Background Citations
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69 Citations

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31 References

Nominal GDP Targeting and the Zero Lower Bound: Should We Abandon Inflation Targeting?

I compare nominal GDP level targeting to flexible inflation targeting in a small New Keynesian model subject to the zero lower bound on nominal policy rates. First, I study the performance of optimal…

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Within a simple New Keynesian model emphasizing forward-looking behaviour of private agents, I evaluate optimal nominal income growth targeting versus optimal inflation targeting. When the economy…

Inflation Targeting and Nominal-Income-Growth Targeting: When and Why are They Suboptimal?

Abstract We compare optimal and simple interest-rate rules. Our model features optimizing agents, monopolistic competition in both product and labor markets, and one-period nominal contracts (for…

Optimal Monetary Policy with Staggered Wage and Price Contracts

Abstract We formulate an optimizing-agent model in which both labor and product markets exhibit monopolistic competition and staggered nominal contracts. The unconditional expectation of average…

Optimal Simple and Implementable Monetary and Fiscal Rules

This paper computes welfare-maximizing monetary and fiscal policy rules in a real business cycle model augmented with sticky prices, a demand for money, taxation, and stochastic government…

Trend Inflation, Firm-Specific Capital, and Sticky Prices

Early empirical studies of the New Keynesian Phillips Curve imply implausibly high levels of price stickiness for standard monetary models with Calvo-type nominal rigidities. More recently…

Centre de Referència en Economia Analítica

Discussion Papers in Economics Dynamics of Output Growth, Consumption and Physical Capital in Two-Sector Models of Endogenous Growth Desirability of Nominal GDP Targeting Under Adaptive Learning

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What measure of economic activity, if any, should be targeted in simple interest rate rules? This paper analyzes the welfare consequences of responding to the growth rate of output and the output gap…

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In recent years, policymakers throughout the world have advocated that monetary policy shift toward inflation targeting. Recent actions in the United States serve to highlight the desire of the…