LOCKED A Nod to Nominal GDP Targeting?
- Having rejected NIRP, Yellen and Carney are giving a nod to Nominal GDP Targeting
- The target encompasses real growth and inflation but we believe inflation will dominate
- In theory, it offers the possibility of reversing permanently low “New Normal” growth
- This is the first new policy initiative in 5 years occurring with a backdrop of rising inflation
October 24, 2016