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I wish Beckworth had pushed back on NGDP targeting vs FAIT. It seems to me that if the AI effect on real income is difficult to predict, NGDP targeting could result in some crazy patterns of inflation/disinflation. Now if he means Flexible NGDP targeting, fine but that’s going to look an awful lot like (indistinguishable from?) FAIT.

Basil Halperin on eclectically optimal policy
May 13
at
10:15 AM
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