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Note that the Market Monetarists have been increasingly vocal recently about central banks overdoing it (after a decade of criticizing for under stimulating). N
by BenoitEssiambre 5y ago
Note that the Market Monetarists have been increasingly vocal recently about central banks overdoing it (after a decade of criticizing for under stimulating). NGDP seems to also be overshooting.
- panick21_ 5y agoYes, they tend to be right. A stable long term trend in NGDP fixes pretty much all of these issues. Inflation and Real growth can figure themselves out independently. If there is a supply shock, you will have lower real growth but monetary policy will not react to that because its a real signal. Market Monetarists were very active training to tell people that the Fed in 2008 were actually deflationary. That I think is what eventually will be the consequences, just like it is with the Central Bank.