Jeffrey Frankel argues for NGDP targeting by EMs
NGDP could outperform inflation targeting for some economies
Emerging and developing-economy central banks could establish greater credibility by abandoning inflation targeting in favour of a nominal GDP (NGDP) target, Harvard University economics professor Jeffrey Frankel argued on June 2.
Frankel, who has advised the Federal Reserve, served as chief economist for the US president's Council of Economic Advisers, and who currently sits on the monetary policy committee of the Bank of Mauritius, pointed to research that implied many emerging markets have
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