Xenophon is right on nominal growth targeting, but…

Wednesday, 24 August 2016

From the AFR:

So, Jacob Greber says that my joint proposal (along with Danny Price from Frontier Economics) for the Reserve Bank to adopt nominal GDP targeting instead of the inflation is a “stupid idea”.

What would be really stupid is if we ignored the alarming drop in our nominal income growth, and the fact the RBA seems to be hamstrung with the current orthodoxy.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.