Nominal GDP targeting remains a distant prospect

Professor Michael Woodford's recent academic paper presented at the Fed's Jackson Hole conference is still making waves, not surprisingly given his conclusions that quantitative easing doesn't work, that the Fed could do a lot more to improve its communications strategy and that a switch to nominal GDP targeting offers the best hope of getting the economy back on track. The Fed could address some of his criticisms of its communications strategy at this week's FOMC meeting that concludes tomorrow, but nominal GDP targeting remains a very distant prospect.