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Carney suggest targetinhg GDP rather than inflation
Comments
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Graham_Devon wrote: »Just a thought, but isn't GDP easier to target?
As an extreme example, you could increase GDP simply by getting loads of people to dig some holes, and then paying them to fill them again.
An inflation target isn't as easy to manipulate?
You can just print money to increase inflation.
I am not sure a nominal GDP target would be any easier than an inflationary target to hit.0 -
Inflation can be infinite. GDP has limits.
Why target something which ultimately you will fail.
Real GDP has limits as the universe in finite or at least we believe it is. I guess there are theological arguments that make GDP infinite in theory.
GDP measured in fiat money is as finite as inflation.0 -
I can see that this thread has brought out the 'big - guns' who frequent this site almost daily.
I hope that the politicians read some of your suggestions and put them into practice, so then they can claim that it was their idea all along.
I just wish that I could follow and understand its content in full, not to worry keep up the good work it certainly brightens my day in these dull days and I thank you.0 -
Or if (as I belive) they mean the countries (rather than per capita) GDP, then just bring in more immigrants.Graham_Devon wrote: »Just a thought, but isn't GDP easier to target?
As an extreme example, you could increase GDP simply by getting loads of people to dig some holes, and then paying them to fill them again.
An inflation target isn't as easy to manipulate?0 -
Graham_Devon wrote: »Just a thought, but isn't GDP easier to target?
As an extreme example, you could increase GDP simply by getting loads of people to dig some holes, and then paying them to fill them again.
An inflation target isn't as easy to manipulate?
Just because it's easier to get right doesn't make it a better thing to aim for. It's a bit like saying that the 100m sprint should be won by the person who runs 20sec rather than the fastest guy. It's easier to engineer but not the best thing.
That presupposes that it's simple to target NGDP. I think that it isn't.0 -
Being focused on keeping inflation in check has been a disaster for Germany over the last few decades.0
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I was being sarcastic.John_Pierpoint wrote: »I have travelled through Germany; I did not feel anything like a disaster zone ?
Can you explain?0
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