rebelbranch

Upvoted because the output of a MATCH can be used in multiple INDEX functions

Professor Sumner,

Thank you for doing this AMA. Reading your views on monetary policy following the Great Recession, how they ran counter to typical narratives while offering considerable predictive value on indicators like comparative GDP growth (e.g. US vs Eurozone) and inflation, convinced me that the “market monetarist” view provides the best framework for future policy. I have two observations/questions:

1. It seems to me that the benefits of NGDP targeting are largely psychological, that having a little bit more in your paycheck (on average) at least generates the perception of economic well-being. What would you say to this assertion, and have economists found any empirical evidence for this in different periods of NGDP vs RGDP growth?
2. Under the right monetary and fiscal policy regime, what would be your ideal mechanism for a “helicopter drop”, i.e. direct dollar transfers to people as opposed to banks?

Thank you again. I look forward to your answers.