The idea of nominal GDP targeting is gaining ground in academic circles as an alternative way for policymakers to boost the struggling economy when interest rates are close to zero. The case for a switch is not clear-cut; the framework would have its pros and cons. But with policymakers likely to go further down the road of unconventional policy, this idea is likely to come under closer scrutiny.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.