...Greg Ransom weighs in on the question that Bob Murphy raised earlier.
I have some comments - read them now before they're purged (it must be the new IP address from the move that is letting me get through. I had been banned for... well... for disagreeing with Greg Ransom about Hayek).
Something to remind people: Bob initially raised the question of whether Hayek and Sumner are on the same wavelength. I think he's right in answering "no". "NGDP targeting" has taken on the definition assigned to it by market monetarists - some steady growth in the level of NGDP. If you want to argue that beause Hayek variously wanted a constant MV and an MV that adjusts with productivity to maintain a stable price level, I'd agree with you on that. But it's a little disingenuous to call that "support for NGDP targeting" just because it's (1.) a target, and (2.) talking about NGDP.
I could say I want NGDP to fall 15% a quarter... is that support for NGDP targeting?
I think not.
Demand, Supply, and Macroeconomic Models
1 day ago