Thursday, May 3, 2012

More Monetary Stimulus?


NDGP (nominal GDP) targeting is gaining ground. Now Chicago Federal Reserve president Charles Evans endorses it. Read the explanation in The Atlantic here.

Now if the US monetary policy turns more expansive what will the ECB do? Continue to look exclusively at the inflation target and limit its interventions to subsidizing ailing banks? What then will become of the dollar price of the European currency?

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