legonomics – Wirtschaft durch die Augen eines Juristen
Below Potential – Insights in Economics – in particular, the Economics of Rules and of Money
John Cochrane's blog
Project Syndicate asked Mike Boskin, Brigitte Granville, Ken Rogoff and me whether 2% is the right inflation target. See the link for the other views. I pretty much agree with them in the short run -- don't mess with it -- but took a different long run view. Apparently Volcker and Greenspan were fans of price level targeting and hoped to get there eventually, which is the sort of long run approach I took here.
I also emphasize that any inflation target is (of course) a joint target of fiscal as well as monetary policy. Fiscal policy needs to commit to repay debt at the inflation target.
legonomics – Wirtschaft durch die Augen eines Juristen
Below Potential – Insights in Economics – in particular, the Economics of Rules and of Money