Niurong as the target for NGDP targeting: Mario Draghi's nightmare?
AbstractNGDP targeting is presented by some macroeconomists as a good practice for central banks. But what should be the target value? I propose a relevant measure: the Non Increasing Unemployment Rate Of Nominal Growth (NIURONG). I use NIURONG to show how difficult would have been for European Central Bank to implement a relevant monetary policy for each Euro Area country in front of post-2008 economic downturn.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 34871.
Date of creation: 20 Nov 2011
Date of revision:
NDGP targeting; monetary policy; Optimal Currency Areas;
Find related papers by JEL classification:
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-28 (All new papers)
- NEP-CBA-2011-11-28 (Central Banking)
- NEP-EEC-2011-11-28 (European Economics)
- NEP-MAC-2011-11-28 (Macroeconomics)
- NEP-MON-2011-11-28 (Monetary Economics)
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