Want demand stimulus? Forget it. Sumner has put us on a diet; so no “sugar rush” for us.
Actually, I don’t want demand stimulus. I’d rather kick the poorly understood but oft abused full employment concept and inflation targeting with all its opioid and corn syrup paraphernalia to the curb. We don’t need no stinking inflation target or perverse incentive to create and maintain unnecessary unemployment as the axis of Plosser, Mester and George would have us believe as if their relevancy has more to do with monetary policy than the people it serves.
Sugar rushes and accusations of favoring procylical inflation management seem out of place given that if we want a 5% NGDP growth trend, we have to get there from the 2.8% – 3.8% NGDP growth we’ve gotten. All of the institutionalized tyranny and intellectual abuse built up around IT, like the full employment concept and what-goes-up-must-come-down-immediately bunker mentality, is entirely beside the point.
NGDPLT is the right thing to do on transparency and accountability, and on the principle of leaving everyone better off. After personally experiencing the sort of damage IT inflicts on innocents and wading through the post-crisis flood of misleading, deflectionist propaganda so deep I needed scuba gear in order to survive it with my I.Q. intact, I’m very passionate about the need for change. It is the hill worth dying on and I won’t be found kowtowing to financial tabloid rags like a sellout – not even after hell freezes over.