NGDP targeting, monetary constitution, monetary rules, discretion, James Buchanan

(Originally appeared on January 12, 2013.) An important post from Lars Christensen at The Market Monetarist this morning.  Lars argues that many folks have misunderstood the argument for monetary easing in order to target NGDP growth by framing it in terms of discretionary policy.  The market monetarists,…

asset bubbles, Great Recession, inflation targeting, monetary policy, NGDP targeting

In the first, 1922 edition of Money, his own now-classic primer on monetary economics, the great Dennis Robertson included a chapter he called "Money in the Great Muddle," about the blow World War I dealt to England's once (relatively) rock-solid monetary system, and to other monetary arrangements…