St. Louis Fed’s Bullard makes case for NGDP target
Paper explores the mechanics of a ‘special upward adjustment’ in the price level
Federal Reserve Bank of St. Louis president James Bullard has reignited the debate on nominal GDP targeting, after publishing a working paper on monetary policy at the zero lower bound on May 28.
The paper – co-authored by Costas Azariadis, Aarti Singh and Jacek Suda – calls into question the effectiveness of unconventional measures deployed since the financial crisis.
The authors find a disparity between the theory and empirical evidence surrounding both forward guidance and quantitative easing
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