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Niurong as the target for NGDP targeting: Mario Draghi's nightmare?

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  • Belgodere, Antoine

Abstract

NGDP targeting is presented by some macroeconomists as a good practice for central banks. But what should be the target value? I propose a relevant measure: the Non Increasing Unemployment Rate Of Nominal Growth (NIURONG). I use NIURONG to show how difficult would have been for European Central Bank to implement a relevant monetary policy for each Euro Area country in front of post-2008 economic downturn.

Suggested Citation

  • Belgodere, Antoine, 2011. "Niurong as the target for NGDP targeting: Mario Draghi's nightmare?," MPRA Paper 34871, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34871
    as

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    References listed on IDEAS

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    5. Bean, Charles R, 1983. "Targeting Nominal Income: An Appraisal," Economic Journal, Royal Economic Society, vol. 93(372), pages 806-819, December.
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    More about this item

    Keywords

    NDGP targeting; monetary policy; Optimal Currency Areas;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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