Routledge international studies in money and banking.
This bookexamines the case of nominal income targeting as a monetary policy rule. In recent years the most well-known nominal income targeting rule has been NGDP (level) Targeting, associated with a group of economists referred to as market monetarists (Scott Sumner, David Beckworth, and Lars Christensen among others) It starts with the theoretical foundations of monetary equilibrium. With this foundation laid, it then deals with nominal income targeting as a monetary policy rule. What are the differences between NGDP Targeting and Hayek's rule? How do these rules stand up against other monetary rules like inflation targeting, the Taylor rule, or Friedman's k-percent?Nominal income targeting, though not new in monetary theory, was relegated in economic theory following the Keynesian revolution, upuntil the financial crisis of 2008, when itbegan to receive renewed attention. This book fills a gap in the literature available to researchers, academics, and policy makers on the benefits of nominal income targetingagainst alternative monetary rules. Nominal income targeting is a rule which is better equipped to avoid monetary disequilibrium when there is no inflation. Therefore, a book that explores the theoretical foundation of nominal income targeting, comparing it with other monetary rules, using the 2008 crisis to assess it and laying out monetary policy reforms towards a nominal income targeting rule will be timely and of interest to both academics and policy makers.
Formatted Contents Note
chapter Introduction chapter 1 Free banking and monetary equilibrium chapter 2 Nominal income targeting and the productivity norm chapter 3 Nominal income targeting and monetary rules chapter 4 Nominal income targeting and monetary disequilibrium chapter 5 Nominal income targeting as market outcome versus policy outcome chapter 6 The 2008 financial crisis chapter 7 Monetary reforms toward nominal income targeting.