Ignorance is blissful

Danny Blanchflower messes up completely. And this is no ordinary academic. For a period he was part of the MPC at the BoE!

At the 5 minute mark he says that introducing a “great new thing” (like NGDP targeting) wouldn´t make any difference because:

  1. Central Banks move very slowly, and
  2. Monetary Policy takes a really long time to take effect anyway

At about the 12 minute mark he says that targeting NGDP is quite impractical, because it is revised!

Has he ever read Cassel or Hawtrey, or heard that as soon as FDR delinked from gold the upturn in the economy was immediate?

HT Justin Merrill

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