Understanding Nominal GNP Targeting

Michael D. Bradley · Dennis W. Jansen

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Monetary Policy and Economic Impact Economic Theory and Policy Economic theories and models

Abstract

Michael D. Bradley and Dennis W. Jansen analyze nominal income targeting from both a theoretical and a practical standpoint. The authors illustrate several desirable features of nominal income targeting, among which is its ability to stabilize output, in a simple macroeconomic model.

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References

1977Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule 1975Implicit Contracts and Underemployment Equilibria 1967Uncertainty and the effectiveness of policy 1961A Program for Monetary Stability.1976Wage indexation: A macroeconomic approach 1977Long-term contracting, sticky prices, and monetary policy 1968Monetary and Fiscal Actions: A Test of Their Relative Importance in Economic Stabilization 1976Targets, instruments, and indicators of monetary policy

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1993Can Nominal GDP Targeting Rules Stabilize the Economy?

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