What aspect of business cycles is nGDP targetting (or aggregate income targetting) supposed to smooth, other than nGDP obviously? Unemployment? rGDP? Long term interest rates?
Say it's 2040, and all central banks have adopted nGDP level targets already... what do the business cycles of this future look like?
MOOC0WMOO2 karma
What aspect of business cycles is nGDP targetting (or aggregate income targetting) supposed to smooth, other than nGDP obviously? Unemployment? rGDP? Long term interest rates?
Say it's 2040, and all central banks have adopted nGDP level targets already... what do the business cycles of this future look like?
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