MONETARY POLICY IN THE POST-CRISIS WORLD:
LESSONS LEARNED AND STRATEGIES FOR THE FUTURE
Christina D. Romer
Johns Hopkins University
October 25, 2013*
Christy, now that she's back in Berkeley, is in favor of regime change;
Back in 2011, a number of economists, including me, argued that the Federal Reserve ought to adopt a new operating procedure for monetary policy: a target for the path of nominal GDP.17 A nominal GDP target is just a different and more concrete way of specifying the Fed’s dual mandate. The Fed is supposed to care about both inflation and real growth. Nominal GDP, which is the current value of everything we produce, is just the product of both those things—price changes and real growth.Which is the prescription that Bentley University's Scott Sumner has been arguing for for over five years now. Would be interesting to hear from her what her former boss thought about this.