Glossary

Nominal GDP level targeting (NGDP targeting)

Nominal GDP level targeting is a proposal that a central bank aim for a path of nominal GDP, the dollar value of all goods and services produced, instead of aiming at an inflation rate. Because the target is a level, past misses would be made up later, which builds history dependence into policy. The Federal Reserve has not adopted it. It is discussed in Federal Reserve research.

Sources

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