Ep. 197 David Beckworth Explains NGDP Targeting and the Fed’s Current Framework
David Beckworth is a monetary economist with the Mercatus Center. He explains the rationale of the Market Monetarists (such as Scott Sumner) who support NGDP targeting as the best monetary policy. He also explains recent innovations in Fed policy, and critiques the MMTers.
Mentioned in the Episode and Other Links of Interest:
- The YouTube version of this interview.
- David Beckworth’s homepage and podcast, Macro Musings.
- David Beckworth’s book Boom and Bust Banking. #Commissions Earned (As an Amazon Associate I earn from qualifying purchases.)
- George Selgin’s monograph Floored! and book Less Than Zero. #Commissions Earned
- Beckworth’s analysis of the NGDP gap, average inflation targeting, NGDPLT as ideal policy, and critique of MMT.
- Help support the Bob Murphy Show.
The audio production for this episode was provided by Podsworth Media.
About the author, Robert
Christian and economist, Chief Economist at infineo, and Senior Fellow with the Mises Institute.
Seeing no comments, I feel obliged to thank David and Bob for the interesting interview.
The NGDP idea is provocative and attractive in that it promises to reduce a fudge-factor in national accounting (how much to correct for inflation).
I admit I didn’t understand what is gained by it. What is revealed when we present the aggregate of moneyprinting + real growth?
Another BMS that teaches me I have a lot to learn, and study seriously.
Thanks!
The way I understood it: measuring inflation and therefore telling the difference between real and nominal growth is very tricky and error-prone. I think his idea is that if you just orient at nominal, you will exclude that whole debacle by reacting to what you should be reacting to in the first place.
Hi Bob, this episode is not showing up on the Apple Podcasts app. Any idea what’s going on?
Good episode! I really enjoy these non-confrontational episodes where we get enlightened about what the other side actually thinks, not just straw men.