Should central banks adopt a nominal GDP target?

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By Leith van Onselen

Economists from the New Zealand Institute of Economic Research (NZIER) are urging the inclusion of a nominal GDP growth target in the Government’s upcoming review of the Reserve Bank Act. From Interest.co.nz:

At the moment the sole goal of monetary policy is to target inflation. The Government’s likely to want to broaden that to include employment as well.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.